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What are the factors of successful franchising enterprises?

when evaluating the feasibility of franchising existing businesses, nine key factors are considered. We boil these nine key factors down to nine problems, which must be fully satisfied before franchising can be successful. Because market competition will be inevitable, it is necessary to have sufficient market demand to maintain one or more franchise systems. The larger market will bring considerable benefits beyond the price, making the business an attractive business opportunity for potential franchisees. The market must provide space conducive to the development of franchisees and franchisees. Franchisees must be able to develop their business in the existing market, because the benefits of franchising depend on the proliferation rate effect. The market must have the potential for long-term development, because franchisees often sign long-term agreements and franchisees need to build a solid infrastructure for the franchise system. This means that the fashion business is not suitable for franchising. Therefore, the concept of franchising must be tried out for a reasonable period to prove the feasibility of its long-term development. In order to recover the investment and pay the monthly management service fee or franchise fee within a reasonable period, the franchisee must make enough profits. If the franchisee is unable to pay for management services, the business cannot be franchised. In order to evaluate its feasibility, the financial forecast must be made based on the current business. In the current economic environment, it is particularly important that the franchisee must be able to repay the debt and pay the management service fee. Consumers must be willing to pay beyond the price of products and get extra services, such as special services. It is difficult for products caught in the price war to achieve good franchise performance. In these cases, the products are hardly respected, and there is pressure to make profits. It is impossible for the franchisee to develop under this condition. Franchisees need funds to try out their ideas for franchise development and build the necessary infrastructure. The initial stages of franchising are investment-intensive periods. Therefore, in order to avoid initial failure, it is very important for franchisers to have stable financial backing. Moreover, the franchisor must be able to bear the professional expenses when franchising, including technical and service support fees. This factor should be considered when expanding business by franchising. Internationally famous franchise projects are also considered as famous brands, such as KFC fried chicken and McDonald's. It is also relatively easy for famous brands to franchise. For example, Haagen-Dazs has opened a series of chain coffee shops by franchising. The criteria for building a brand include uniqueness and tapping the ability of consumers to admire the brand. A good brand is easy to be recognized and famous, and consumers can easily remember this brand. This is the essence of the brand: to occupy the first place in the minds of consumers to ensure repeated purchases. Another important factor is whether the brand can be protected. Intellectual property rights must be registered as soon as possible and not easily copied. Generic names are difficult to be registered (for example, TheCoffeePlace is a generic name and Joe'sCoffeePlace is easier to be protected). Uniqueness is one of the prerequisites for products to be franchised. In order to succeed, an easily copied product has to struggle for competitive advantage. Although some products are competitive in nature, if you provide consumers with benefits that other brands can't or won't provide, you can remove the obstacles to entering the market. The tire parts center with fierce price competition is an example. By adding overtime service or vehicle service, operators can make themselves different. Franchisees and franchisees must be able to get a return on their investment. The franchisor will invest capital and incur costs for developing the infrastructure of the franchise system. The reward he gets must prove that his investment is worth it. The franchisee needs to get a reasonable return on the investment, otherwise he/she will easily have the idea of seeking other business opportunities. It is very important to have the potential to establish a franchise culture suitable for this system. Franchise culture is open and connotative. This culture must be flexible and auxiliary in nature. When an organization chooses to take the road of franchising, it must strive to create a win-win situation, that is, franchisees and franchisees depend on each other for success. Professional franchisers have long-term plans for business success, including future business development planning and strategies for continuous success. Franchisees must believe in the highest business ethics and practice it, especially because franchisees hand over a lot of money to franchisees. Corporate companies are often considered as poor franchisees because they don't have proper entrepreneurial spirit and way of thinking. Franchisees need guidance and support in a flexible environment. They need guidance, but not orders.