Generate money from
fast food franchise business is different from conventional or traditional kind
of trade. Companies does not earn only by selling products or services but also
by royalties & franchise fees. People who are unfamiliar to franchise
system and want to become franchisor must know about basic concepts:
Franchise fee: Every
franchisor has charged certain fee to give you ownership. Existing brands such
as Box-o-burger offer low cost business opportunities, also not charge high
franchise fee.
Royalties: Some
% of profit will be shared to franchisor by franchisee.
It is basic
revenue model which is used by fast food franchises these days. Furthermore, companies
also provide raw material to franchisees. Apart from this, all charges may vary
from sector to sector. Box-o-burger is one of the fastest growing fast food franchises;
it is Indian brand which has developed wide varieties of snacks like burgers,
pizzas, French fries, etc. Revenue model is simple as well as easily mould as
per market demand, structured by the brand. Here are few strategies which will
be beneficial for both franchisor & franchisee:
1.
Support new franchisees: It is
responsibility of franchisor to assist entrepreneurs who are new to industry
and franchise system. Provide them vital marketing & training support.
2.
Communication: Effective
communication between franchisor & franchisee would be crucial to increase sales
and profitability.
3.
Marketing events: In order to
retain customers, interact with them continuously, take feedback about services
and products and also treat them as vital stakeholder.
4.
Incentives: Pay attention to
high performance franchisees, appreciate them and also identify low performing
franchisees for further improvement.
In
fast food franchise sector, things get automated due to emerging technologies.
It is estimated that after five years all commercial activities would be done
through automation. Huge growth opportunities for new comers as well.
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