It takes a lot of time and effort, sometimes even luck, to turn a small business into a huge commercial success. A lot of planning and strategic moves must be made throughout the whole process. Luckily, if most of the time things go the right way, business owners can have greater chances of making their business an international brand. So what’s the next best thing in order to increase profits and revenue? A person could try enlarging his business, make the store bigger. Better yet, he could apply the franchising business model to facilitate rapid expansion.
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One of the many things that franchising makes for a profitable system for brand owners is that it does not require them to shell out a large amount of money to set-up a new branch. This is due to the fact that establishing another store will be shouldered by the franchisee. The franchisee will then pay a percentage of their revenue throughout the duration of the agreement as a form of royalty for obtaining the license to use the business’ brand, proprietary knowledge, products, and services.
With franchising, management becomes so much simpler as well. More often than not, franchises are being managed by the person on the other side of the franchise agreement. This means that the parent company doesn’t have to worry about the intricacies of running every business, although his direct input (no matter how small) would be of great help to his business partner.
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Another benefit of self-managing stores is that expansion becomes so much easier. This is also a direct result of self-earning proponents. All franchises have to do is replicate a clear and well thought-out working business formula that has succeeded many times in the past. The popping up of stores in every major location in the nation will only be a matter of time.
Some of the world’s biggest franchises, apart from being easy picks for both private and corporate investors, have become parts of daily life and popular culture. The likes of McDonald’s, Subway, 7-Eleven, and even media franchises like Pokémon and Harry Potter created significant impact that they are now considered to be highly indestructible brands. They are a staple in many investment portfolios, favorite hangout places for students and employees alike, the basis for many merchandise items, and in some cases, the subject of scholarly studies.