Are you planning to start a business? One of the business models you can consider is the franchise model. A franchise business is a company that allows third party operators, who are then referred to as franchisees, to use its name, brand and techniques. In exchange, the franchisee pays an initial fee and royalties to the franchise business (which is referred to as the franchisor). One of the most well-known franchise businesses is the MacDonald’s Restaurant. There are several benefits of investing in a franchise; however, one should seek legal advice before making any contractual agreements. Here are four benefits of investing in a franchise.
#1 Franchisor Backing
The franchisor will offer support such as marketing the business and continuous training of staff. Being a part of the brand will also mean that you can benefit from organised incentivised programs the franchisor already enjoys. For instance, you can receive supplies at a subsidized cost depending on the arrangements made by the suppliers and the franchisor.
#2 More Likely to Succeed
Instead of the usual trial and error, you will be using a model that is already tried and tested to be a proven success. This will increase the chances of your business succeeding.
#3 Appealing to Customers
It will be easier to attract customers and sell your products since they are already known and accepted in the market under the brand of the franchise. For instance, in the case of a restaurant, the brand will probably be recognized for certain foods, thereby making it easier to attract knowing customers and make sales.
#4 More Accessible Credit
Most banks are more likely to give loans to franchises because they believe the business is likely to succeed, thus lowering the risk of default in repayment. To add onto that, you will receive a detailed business plan from the franchisor that can come in handy when you are seeking financial assistance. With a successful model and a known brand your chances of getting financial assistance will definitely increase.
Shekwase
January 25, 2011
This is very interesting and encouraging way of starting a business, but how many companies, or which companies are offering their names on franchise? How does one get to apply for such? It would be one way to make a better start.
Regards,
Shekwa, ZAMBIA
Shekwase
January 25, 2011
How exactly does one go into franchise? Specifically which companies are offering for this facility? it is a wonderful way of starting a business, I mean without experience, and skill, there is a format already awaiting you. Please kindly give me more information on this, I am keen.
Regards,
SHEKWA, ZAMBIA
Africa Report Team
January 25, 2011
Hi Shekwa,
Keep checking the Africa Report website, we will do an article soon on exactly what a franchise is and how to research different franchises and brands. Success!
Africa Report Team
Africa Report Team
February 7, 2011
Hi Jesse,
On our website you can visit our Directory, which has a wealth of information under the links Assistance, Finance and Loans. In order to list yourself and your business on our website, follow the instructions in this article which shows you how to make a Marketplace listing. Here you can create a Finance Request asking for assistance.
Best Luck!
Africa Report Team
Prescaliah A.Teo
February 11, 2011
What do I need to do first to start a new business. Also I need more information on registering of companies, like what is really needed?
Africa Report Team
February 11, 2011
Hi Prescaliah,
You can look for resources in our Directory and by placing a Marketplace advert on our website.
Here are instructions on How to make a Marketplace listing.
Africa Report Team
Africa Report Team
February 21, 2011
Dear Fortune,
You can look for resources in our Directory and by placing a Marketplace advert on our website. You can search according to specific countries, in your case choosing Zambia in the drop down button, to see which resources are available to Zambia.
Here are instructions on How to make a Marketplace listing.
Africa Report Team
Albert partson Mwakalambile
April 25, 2011
Im interested inyour organisation. Im a Tanzanian citizen planning to have my company, soon I will be investing in local poultry and selling chicken internationally, but i need your advice. My company name will be
ALKC poultry company.
Call +255 755 789 338 or +255 655 789 338
Box 144, Mbozi, Mbeya Tanzania
Mwakalambile Street
Albert partson Mwakalambile
April 25, 2011
Albert partson Mwakalambile: 25.04.2011
I’m interested in your organization. I’m a Tanzanian citizen planning to have my own company soon. I will be investing in local poultry and sell those chickens internationally, but I need your advice. My company name will be:
ALKC Poultry Company
Call: +255 755 789 338 or +255 655 789 338
Box 144
Mbozi Mbeya
Mwakalambile Street
Tanzania
Dozie
May 4, 2011
I like the idea of this franchise brand name. However, I want to know if this extends to Nigeria and the companies I can meet for assistance for furher information.
Thanks.
Dozie.
Robert
May 27, 2011
I have followed more of your achievements from the media and its very encouraging – your program which airs in our country Kenya. To see what you’re doing in most African countries, words cannot be enough. I hope to join you and become one of your success stories.
Congratulations and keep it up.
Regards
Robert
Wilma
October 20, 2011
Thanks for this useful article. I’m just starting up my personal website and this has offered me inspiration. Not easy to be an entrepreneur in Africa, but now, I have tips on how to be a success!