Did you know that franchising is a global phenomenon? Well-known franchises are operating in numerous countries around the world. Joining us on today’s episode of The Small Business Show is Troy Hazard, Franchising Expert, Entrepreneur, Keynote Speaker and Author.
Troy Hazard has faced and overcome various business challenges, from devastating financial loss to extraordinary success. The entrepreneurial genius’ primary line of work has been serving as a consultant to some of the most well-known brands in the world. Troy’s professional experiences have given him invaluable insight into how businesses operate and what customers are thinking. He provides insights as a best-selling author, speaker, and seasoned television broadcaster.
1. The definition of franchising is a business where the owner licenses its operations- along with its products, branding, and knowledge- in exchange for a franchising fee.
2. To operate as a franchisor, you must have operational instructions, HR manuals, marketing materials, and the appropriate branding and marketing.
3. To be a franchisee- just follow the systems.
4. Private equity firms and investors have examined the sector’s back end for the past ten years. Hazard believes they were drawn to the prospects for recurring revenue in the past.
5. The industry determines the ease and challenge of entering the franchising business. For instance, since franchising B2B is more cost-effective, it might be simpler to get started. Whereas:
- The service-based franchise has an initial $20,000- $$50,000 fee and monthly royalty fees.
- The fast food franchise has an initial $100,000-$300,000 fee.
6. Suppose you want the freedom of being an entrepreneur and want to enter into franchising. In that case, it may not be the best plan since franchising is geared toward following a strategic system.
“Franchising is like being in business for yourself, but not by yourself.” – Troy Hazard