Why Acquire a Franchise

The Directors believe there are significant benefits of investing in franchise operations including:
  1. Established branding and structured marketing
    Franchisors’ businesses can thrive on the success of their marketing initiatives and ultimately on the strength of their brand. Franchisees can use the structured marketing initiatives to project their brand to new jurisdictions and avoid having to build a new brand. Franchisors will usually assist with this through providing the marketing collaterals and concepts for the marketing initiatives to a franchisee;
  2. Track record
    Usually franchisors will already have developed well-documented business processes that have been implemented numerous times and have therefore been tested over time. This means franchisees have detailed step-by-step business plans to enable them to implement a similar strategy;
  3. Training programs
    In order to achieve successful standardisation and coherent service delivery to customers at all outlets throughout the world, franchisors develop comprehensive training programmes that can provide education to franchisees and their employees on the business process, supply-chain, management and overall business operations. Usually the training program is one of the key components of the franchise arrangement – where franchisees are trained both initially and on an on-going basis;
  4. Management and operations support
    The success of a franchisee is ultimately the success of the franchisor. To support the franchise the franchisor will usually provide management and operational support to the franchisee’s operations; the franchisee can tap into the experience of the franchisor in relation to operational matters. Franchisees also are able to share information or seek advice from other franchisees. Franchisees would usually be expected to document such interactions and share these with the franchisor, thus creating a large repository of information and resources to share in the future;
  5. Assistance in site selection
    In order to maintain a standardised branding and image as well as balancing the operational cost, franchisors will usually assist franchisees in selecting a suitable site to start the business. The franchisors will utilise their previous experiences to assist franchisees to select a suitable location that meets the demands for their product offering as well as meeting the budget in line with projected or anticipated revenues;
  6. Interior design and renovation assistance
    Established franchisors usually have a defined concept of their brand and how the outlets should look. Franchisors will provide design concepts and assistance in layout designs. Franchisors may insist on the type of furniture, equipment and fittings that goes into the outlet design and very often the franchisees have minimal scope to alter the look and feel of the establishments in order to ensure standardisation and maximise the efficiency of the initial investment; and
  7. Economies of scale
    Franchisors usually have the economies of scale when placing orders for furniture and equipment for their franchisees. This benefits the franchisees by reducing the initial development cost. Further, once the franchise is in operation, franchisors may continue to assist in procurement of on-going day-today supplies and inventory, thus making the operational cost more efficient.