Does extraordinary performance of the franchise mean prosperity?
“Of prosperity mortals can never have enough” [/i][/i]
One of the many reasons that franchise fail is that there are flaws in the program. Flaws could be in nay process; either in the sales, strategy created, planning, marketing, service, customization etc. The situation wherein the program fails depicts outcome like poor sales, low gross margin, expenses exceeding income, and difficulty in achieving the targets. Hence the prior requirement over here is extraordinary performance; which can be corrected only by the franchisors. There can be problems arising from disparities among expectations among customers and franchisors. Hence when there is nothing in mind as strategy one thing that any franchisor can do is that one can frame a model/specific way of conducting a business; which will have all specificities mentioned in it; hence there is no confusion thus enabling flow of activities; inflow of funds publishing of ads, thus ingurgitating the royalties and contribution made from ads. Franchisors have to take a realistic approach when it comes to the level of performance their franchisees can be expected to achieve.
Common flaws that are noticed [/b][/b]
Inflated Expectations
Inadequate Promotion
Market Saturation
Poor Location
Ineffective Franchisors
“Of prosperity mortals can never have enough” [/i][/i]
One of the many reasons that franchise fail is that there are flaws in the program. Flaws could be in nay process; either in the sales, strategy created, planning, marketing, service, customization etc. The situation wherein the program fails depicts outcome like poor sales, low gross margin, expenses exceeding income, and difficulty in achieving the targets. Hence the prior requirement over here is extraordinary performance; which can be corrected only by the franchisors. There can be problems arising from disparities among expectations among customers and franchisors. Hence when there is nothing in mind as strategy one thing that any franchisor can do is that one can frame a model/specific way of conducting a business; which will have all specificities mentioned in it; hence there is no confusion thus enabling flow of activities; inflow of funds publishing of ads, thus ingurgitating the royalties and contribution made from ads. Franchisors have to take a realistic approach when it comes to the level of performance their franchisees can be expected to achieve.
Common flaws that are noticed [/b][/b]
Inflated Expectations
Inadequate Promotion
Market Saturation
Poor Location
Ineffective Franchisors