Sunday, October 13, 2013

Franchising

There are several conditions such as recession that are either favorable or unfavorable for some franchise sectors. The most successful sectors are the following:
1. Fitness Centers: Nowadays, fitness is seen more like a necessity than a luxury. It has become more popular among the customers and therefore, also more available. Fitness Centers benefit mainly from membership-based model that provides consistent cash flow.
2. Healthcare: Healthcare franchise tend to grow during both good and bad times. Overpopulation is fueling them and makes them very successful
3. Fast-Food Restaurants & Convenience Stores: These franchises often offer discounts and specials that cause them to be very popular among consumers. The most successful are hamburger, pizza and doughnut restaurants.
Other franchises such as tax services and educational programs are also doing pretty good.

Sectors that are less successful are the following:
1. Financial Services: These franchises were hit by finance crisis and even though they started to recover since 2010, the recover is still very slow, especially for banks.
2. Real Estate Services, Property Inspection, Hardware Stores: The main reason of them being still in decline is that the real estate market is still struggling.
3. Automotive: Decreased traffic volume and high gas prices causes auto-related franchises to lose units.
Other less unsuccessful franchises are for example: video rental or general printing services

Home-based franchise - Jan-Pro Franshing Int'l. Inc:
They offer commercial cleaning services to businesses such as gyms, banks, schools, churches. They use cleaning products that contain less chemicals. The advantage of home-based franchise is that it can be run from home. Another advantage is that the number of  employees needed to run one unit is only one.

Low-cost franchise - Novus Glass Franchise:
This franchise began franchising in 1985. They came up with an idea that instead of replacing windshields that could start repairing them. Therefore, this franchise offers windshield repair system.The advantage of this franchise is that they are seeking for new franchises units in many countries such Mexico, Canada, Western Europe or New Zealand.Also 20% of all franchisees own one unit and this franchise can be also run from home.

The franchise ranked in the top 100 overall - McDonald's:
They are a fast-food restaurant that offers quick-service hamburgers, fries, milkshakes, chicken, salads and breakfast items. There are several factors that make this franchise successful. First, McDonald's is an internationally-recognized brand thanks to their availability. They have franchises all around the world and by serving food quickly they became very popular among the customers. By offering children's menu called "Happy Meal"containing a little toy they gained children's attention too. Interestingly enough, franchiser is still seeking new franchises units worldwide. 80% of all franchises own more than one unit.



No comments:

Post a Comment