Franchising is not only a viable business opportunity; it may well be the answer to the devastating unemployment across the globe.
Worldwide, franchising has proven to be the job creator of the future. In many ways, it is also a unifying force; the New York Starbucks lover of the skinny latte has something in common with the Starbucks skinny latte lover in Malaysia. And when they travel to other parts of the world, they automatically identify with other Starbucks fans in those cities. The sign above the store is a beacon to strangers in a city, a place where tastes are the common bond.
Despite all the gloom and doom on Wall Street and stock exchanges, franchising has weathered the economic typhoon that has swept across this inter-connected planet. The forecast for the franchise sector remains sunny with cool breezes and perhaps the chance of the isolated shower. By merging a franchiser’s brand of products or services with proven and reliable support systems, the self-motivated franchise owner has a real opportunity to make profits and create employment.
The born entrepreneur relishes the franchise opportunity: by channelling his or her innate high level of motivation into a tried-and-tested formula, and using the franchisor’s rigid business format, franchising has thrived, even in these depressed times. Franchising is a business format without boundaries. Anyone, from any walk of life, if they can access financing, has the chance to run a profitable business venture.
The franchising system is ideally suited to small and medium-sized enterprises. It encourages small business growth in every imaginable sector – from food to fitness, bean bags to boot camp. You name it, there’s a market out there who wants it. They just don’t know it yet.
The beauty of franchising as a business opportunity is its power to be a catalyst for job creation, training in new skills (for example as a barista in a coffee franchise, or a yoga instructor with a gym franchise); and of course making a return.
Globally, franchising has yielded mind-boggling results. Australia ranks third in the index of countries with the most franchises, with 26 per cent of its retail business going through the franchise sector.
In Europe, North America and Australia, franchises have played and continue to play a pivotal role in economic success. Opportunities now exist to extend successful franchise systems into new markets and new territories to sustain growth and increase turnover. The emerging markets in the Far East, South America, Eastern Europe, Africa and the Caribbean are the 21st century’s fertile grounds for franchising to become viable business opportunities.
Franchising can be an excellent business opportunity if franchisors provide effective support in bulk purchasing, sales promotion and marketing, business management systems and training. Small businesses that join a franchise gain instant visibility, better brand recognition, pooling of resources for advertising and marketing, and empirical expertise in business operations and systems.