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Franchising
The Challenges
With a relative saturation of franchising in the FMCG retail markets in North
America and Europe in expanding the businesses, companies that are successful
in the home market and elsewhere are finding their ways in the developed and
developing markets which offer the greatest franchising growth potentials.
Though successful with a strong brand and a winning franchise formula in the
home market, the same cannot be guaranteed when being implanted to a new target
market.
Successful companies which are strong on franchising develop a coherent brand
and marketing strategy, supported by adaptive franchise structures and programs,
across the different markets they operate. While providing the necessary supports
for the franchise programs, it is essential to modify the home franchising
strategies to cater for local business and regulatory requirements. By deploying
customised local solutions with operations excellence, franchising is a great
means to grow in a new market, offering greater return to shareholders while
minimising capital investment.
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