Starting a new business venture is always a challenge that involves risks. However, higher levels of market uncertainty globally due to limited financial resources and lower discretionary income available to consumers have combined to raise the risk factors. As a result, many capitalists are looking to invest in franchised businesses to limit their financial exposure. Manal Syriani, franchise manager of The Lebanese Bakery, shares key franchising solutions that could make all the difference
The local market is rich with a variety of F&B businesses offering franchising opportunities to achieve profit goals, while ensuring the growth of their brand. Therefore, franchisors have to establish themselves as leaders and offer tempting packages to be able to attract investors. A strong profile for any franchisor should provide:
Strong brand image
This should allow investors to identify with the brand and be coupled with a clear communication strategy that translates the essence of the brand into marketable materials to attract and retain customers. A strong brand always tells a story that the target market can associate with, regardless of the products and services they are selling. A businesses’ ultimate aim is to be able to continually generate revenues, therefore any business owner will look for a lucrative business that is capable of consistently producing revenue and attracting new customers.
Strong company culture
This should convey the trust of shareholders to always support their partners, appreciate their need to understand the decision-making process and make sure their interests are always heard and acknowledged. Direct open communication with owners and decision makers – between franchisor and franchisee – is invariably a motivation for investors when weighing up a business opportunity.
Strong operating system
An elaborated business model should translate into a strong operating system via simple implementation steps that allow customers’ interests to be placed in line with company interests. To be successful, an operating strategy should simplify decision-making, while remaining efficient and direct.
Well-established fee structure
This should provide clear return for each fee paid. Investors should receive a breakdown of support that will be provided by the franchisor team at each level of the brand development before committing to the investment. It is important that the support the business provides in the development and operational side of the concept should translate into increased trust from the investor in the future of his investment.
This can be achieved by being present at franchising exhibitions and industry trade shows. Such events will facilitate the matching of investors with franchisors and allows investors to experience the franchise management team in an informal setting. Specialized networking events and targeted gatherings are additional opportunities for investors to better understand the business side of the industry, beyond the monetary benefits.
A new chapter
As we enter an era in which change is becoming the only predictable constant, especially on the economic and business scene, it is important to note that investors are becoming more critical in their approach to accessing a business. Trust, transparency and a strong presence are becoming the trading currency in the franchising business.