What Makes Franchising More Attractive Than Starting Up A New Business From Scratch

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Initial-and-ongoing-support Initial and ongoing-support is one of the most important aspects in developing a franchise system. What makes franchising more attractive than starting up a new business from scratch is that they do not need to have any background knowledge in the industry as franchisors will have the system and provide the support to get them started. All successful franchises have excellent support for their franchisors, and this is also one of the aspects of attracting franchisees. Initial-support consists of providing the following: operations manuals, pre-opening-training, start-up support, site-selection, turnkey-operations and Financial-package. Fergburger will have to provide an operations manual, as discussed above, on how they want the franchisee to operate the business, that has made Fergburger what it is today. The pre-opening-training period will depend on the franchisor’s industry, the size, fees and the system they have in place. Since Fergburger will be just starting out as an international-franchise, they will need to establish a strong system in order to capture their competitive advantage. Pre-opening training for Fergburger will be important, because the success of this company also comes from the culture. It is important to pass on the culture of the company to the franchisee, how they differ as a gourmet and healthy burger compared to alternative burgers. Start-up support is where experienced staff from the Fergburger-headquarters work closely with the franchisee to make sure that everything is running smoothly. This is also the time where the franchisee can ask the representative any questions that may arise. The time period for start-up support varies on the complexity of the business si... ... middle of paper ... ...ble to them. List-of-recommendations-for-International-Franchising As discussed above, Fergburger will have to consider the culture of country, and community before it decides to franchise. Furthermore, the legal requirements and political stability of each country. The legal factors affecting a franchise business, taxation, export of NZ meat, contract law, all have to be looked into by Fergburger before entering into a contract with a franchisee. Further, the economy of the country must be checked upon. In addition, Fergburger will have to look in to the competition it will be facing in each country, how tastes and preferences differ from New-Zealand customers etc. It is vital for Fergburger to also consider how communication with the franchisee will be done. There should be clear form of communication between the two parties, to effectively run the restaurant.

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