Franchising: a Good Choice for Business Growth
Joel Caws - Technical Director, Select Your Franchise
Franchising is still the main choice for restaurant chains when considering growth. In a news article from QSR Magazine, Technomic reports:
“A focus on growing the franchise system allows franchisors to spend less on restaurant-level operations and redirect capital toward systemwide marketing and brand initiatives”
Their findings included a 1.6 percent nominal growth across the top 400 restaurant franchisors for 2009, which considering the state of the economy at that time, speaks for itself.
It’s clear the franchise model works well when it comes to companies who are focused on growing their business outside the scope of company owned stores or outlets. Once a new franchise outlet is up and running, it effectively becomes a self-sustaining unit in terms of its own administration and management, leaving the franchisor free to focus its resources on repeating the growth cycle. Of course, restaurants lend themselves well to franchising due to their focus on repetitive systems which avoid the need for highly qualified staff. Anyone with a willingness and dedication to learn the system could in theory start up and run a successful franchise outlet.
And its not just restaurants that can take advantage of the franchise model but any other industry where the core business tasks and procedures can be identified, documented and carried out by another just by following the formula.
Tags: business growth, franchise, franchise development, franchise growth, joel caws
