Singapore brands are well accepted in the region and countless brands, with the help of our very supportive government and Enterprise Singapore’s EDG Grant, have made their foray overseas through franchising. Franchising is a very attractive way to grow without bearing the full risk involved with brand expansion.
However, just how many franchised brands have really thrived after the initial glow of a new relationship with their franchisees? Most brand owners have been conditioned to think all the need for franchise development is to develop a franchise strategy, a Standard Operations Manual to offer their franchisees, a training and set up to get the franchisees going, recruit franchisees who would pay the franchise fees and wait for the royalties to flow in.
The reality of franchising is that it is a full time commitment by the brand owner to develop their franchise and manage it on a day to day basis. Franchise Management is about strengthening their business’s key drivers and ongoing development and improvement on the systems to keep their franchisees fit and profitable. It is a combination of strategy and operational efficiency. Mostly it is about systematic building of business fundamentals.
Without knowing what the business fundamentals that lead to successful franchises are, it is hard to expect business owners to build towards that. Understanding what it takes to build a strong franchise system and how to manage the franchise effectively goes a long way towards the practical growth of the franchise network.