The Franchising Concept
What Is Franchising?
Franchising is a 'joint venture' between an independent person (the franchise owner) and a business owner (the franchisor) who wants to expand their business activities.
A franchising agreement allows the franchise owner the right top operate using the franchisor's trade name, in accordance with the business format. All aspects of the franchise owner's business are strictly controlled including image, products or service, systems and administration.
The initial franchise business expansion investment may be high, however once developed, your franchise owners will pay you a fee, reimbursing your costs. Once you are up and running, you will receive a regular income from each franchise owner by charging a management service fee or by marking up the price of goods supplied.
Why Expand Your Business?
"Building A Legacy"
- Making a difference in the world. When Bill Gates acted on his dream of putting a computer in every home and on every desk, he had no idea of the fortune it would bring to him, since he wanted only to make a difference.
- Finding personal meaning. In his book, "The Art Of The Start 2.0," Guy Kawasaki exhorts entrepreneurs to focus on making meaning, not money. He has said many times that if your vision for your company is to grow it just to flip it to a large company or to take it public and cash out, "you're doomed." Do it for meaning.
- Satisfaction of doing something great. Steve Jobs summarised his intrinsic motivation in 2005 at Stanford in a talk titled "How To Live Before You Die." He said, "Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do."
- Personal growth and accomplishment. To be a successful entrepreneur, one can never stand still. The best entrepreneurs enjoy the journey as much as the destination. They have a thirst for knowledge that helps them in their business, as well in their own personal growth. That synergy creates a sweet spot that maximises their impact.
- Seeing the real value of one's belief. When asked why he created Facebook, Mark Zuckerberg replied, "It;s not because of the amount of money. For me and my colleagues, the most important thing is that we create an open information flow for people. Having media corporations owned by conglomerates is just not an attractive idea to me."
- Helping others achieve their goals. Elon Musk has opened up Tesla car battery patents for use by anyone, which obviously will benefit his business as well as theirs. If you want to achieve your goals, help others achieve theirs. Great entrepreneurs keep your eyes open for other businesses in a related space that can complement theirs.