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Should I enter the franchising world even if I don’t have a franchise system?

Franchising is an excellent way of expanding a business. However, a lot of business owners think that their business is set up not exactly how the franchise business would be. Any profitable business is constantly tweaking its operations to grow faster, and you can achieve this goal through franchising. 

As a franchise consultancy firm, Auto Tech Global has helped over 40 businesses set up their franchise system. We are ready to provide a professional opinion about why you should enter the franchising world, and how the franchise business model should operate at this point. The key to franchising is a sound system of operation. 

It would help if you plan and make good preparations before launching a franchise program that is appropriate for you. To get a professional assessment of your needs and what steps to take in preparation, you'll want to meet for a consultation. Contact Us now.

What are the advantages of setting up a franchise business compared to expanding company-owned units? 

There are many advantages to enter the world of franchising and many businesses look at franchising as a good growth option. 

1. Costs - Franchising your business can be a cost-effective way to grow your business. You do not have to cover the cost of investing in new premises or staff; what you need to do is to receive franchise fees and royalties. 

2. Easier management - The franchisees run their businesses under your franchise system while reducing the management demands placed on you. It will save your time as you don't have to spread your time to manage company-owned units when you expand your business in more locations. 

In fact, once your franchise system is in place, your main job will be only to oversee the franchise company, instead of doing all the time-consuming, day-to-day tasks of business management . Ultimately, once you've transitioned into franchising, if you're like most franchisors, you'll find you're working smarter, not harder. 

3. Motivated franchisees - It's the fact that the franchisee is more motivated than any manager because the franchisee has invested their money to open and operate the business. Not only that, the franchisee has local knowledge who understands the market very well. All of these will make your life much easier. 

Talk to our consultants to get more in-depth information about why you want to franchise your business and how to build a solid system.  

What if my business isn't unique? 

Not every franchise business is unique. Neither McDonald's nor Burger King's have a unique business. In fact, both of them serve up a burger, french fries, and a soft drink. Anyone can do this business. 

Being distinctive is helpful to attract ideal investors (franchisees) and build a successful franchise business, but it's not essential if other elements are in place. What these fast-food franchises have is a well-defined system. 

I've heard a lot about franchisor/ franchisee disagreements. How to avoid this problem? 

One of the common misconceptions about franchising is that it will lower the level of quality in the business and damage the company brand. 

It's true that when a business grows, the business owner runs the risk that the new locations will not have the same standards of excellence as the original location. But business owners will be even harder to control this risk if they open company-owned units in new locations and rely heavily on managers to run their business.

The myth that franchising sacrifices quality is not true if you have a well-defined system that will assist your franchisees to follow the procedures and SOP that you've set. 

More importantly, the franchisee is highly motivated and willing to put in more effort and time to serve customers better compared to any manager. The reason is that the franchisee has invested their money to open and operate the business. Ultimately, franchising can assist in not only maintaining standards but also building market share. 

Keeping control over quality as you expand comes from the strength and quality of the franchise program you build. There are several keys you need to do to minimize the disagreements and legal risks, including proper planning, draft good legal documents, set up a complete operations manual and create a training program for your franchisees. 

What is my responsibility if a franchisee does not pay his/her bills? 

None, legally. Every franchise is an independent business. But the standardized franchise system and proper training will help franchisees with little or no business experience to benefit from a company with people who own and operate successful businesses. 

So it's important for the franchisor to track and monitor every franchisee closely so that you know when problems arise. Then you can help the franchisee find the cause of the issues and correct them quickly before those problems escalated.

Can you guarantee that anyone will buy my franchise after I've put time, effort and money into a franchise program? 

There is no guarantee that a franchise program will lead to a deal, and the fact is no one can guarantee business success. However, franchising will open up a new growth option to your business, and it is a method of building upon existing success. 

What is more important, of course, is a well-constructed franchise program that compares favourably with other franchises when prospects come to call. 

Prospective franchisees need to feel that you are credible and can assist them in being successful. Your program and related materials go a long way to achieving this. 

How does The America Autotech Inc assists companies that are already franchising? 

We have over 20 years of assisting franchise companies throughout ASEAN. Hence, we know what works and what doesn't in the automotive industry. We are not only helping business owners to set up a well-defined franchise system, but we also assist the franchisors in reviewing their current system. 

So it's important to know what kind of problems you are experiencing with your franchise program such as:

- inadequate franchise sales
- your relationships with some of your franchisees strained
- outdated or ineffective legal documents, operations manual and marketing strategies
- you've no idea how to do international expansion through franchising

    If you have face one of these problems, it's time to contact us now. We will give useful guidance and practical solutions to help you turn all these problems into opportunities.

    Ready To Get Started?

    No matter where you want your business to go, our franchise consultant will help you to get there. Let's work together.

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