The financial dangers are considerably less and the forecast for success is greater than for a self-start business. By entering into a franchise agreement, business owners are assured that they will benefit from the experience and resources of the franchisor as well as other franchisees that are able to guide and assist in times of need.
In a top-class franchise, entrepreneurs are assisted in all legal, financial, marketing and operational matters from the beginning. Firstly, it helps potential business owners to compile a business plan before all financial matters are discussed with support office to finalise breakeven and cash flow projections for each store. Further, during this meeting various financing options from financial institutions are discussed to ascertain the best possible deal and again to reiterate the investment required.
Once all commercial matters and business aspects have been addressed, every franchisee joins the training academy that provides ongoing support for existing staff as well as training for new staff entering the system. Courses are run on a continuous basis for ease of planning. Further, skilled evaluators visit stores on a regular basis and conduct onsite training and coaching as and when required.
It is however, important to stress that even though franchisors provide all-encompassing training, operational guidance and mentorship, a successful business model and nationwide marketing programmes, it is still the entrepreneur's responsibility to ensure the success of the business. Business success can only be achieved through hard work, time management, a commitment to the franchisor's model and finally, a desire to succeed.
