by Rudolf A. Kotek
What kind of business to franchise?
Virtually every business form you can imagine lends itself to franchising. The International Franchise Association (IFA) lists more than 60 categories to describe its members.
Is the look-alike characteristic of franchises a disadvantage? Don’t consumers want variety?
The increasingly mobile consumer has come to depend on and appreciate the consistent quality of franchised products and services. Today, no matter where they go, people expect and want the same quality, which is why consumers so often shop at franchised establishments. The ability to easily recognize an establishment from the outside guarantees there will be no surprises or disappointments on the inside.
What kind of investment is necessary to buy a franchise?
Investment requirements differ tremendously. It all depends on the industry and the type of business. Discuss this with the individual companies or with RK Franchise Consultancy. Franchises might be purchased for a starting price of 200,000 Pesos and range right up to 27 Million Pesos for a single unit store and anything from US$ 20,000 to US$ 5 Million for a master franchise.
Buying an existing Franchise Outlet
Just like any business, existing Franchisee can sell in many Franchise systems their franchised outlets if they no longer want to operate it. The Franchise Agreement has provisions when, how and to whom a Franchised Facility can be sold. However you can only purchase the remaining term of the Franchise Agreement. In purchasing an existing franchise, make sure there is an assumable lease and the landlord will consent to the transfer.
Rudolf Kotik is the founder of RK Franchise Consultancy Inc, which developed more than 350 Filipino Companies into Franchise Systems, with address at G/F Minnesota Mansion, 267 Ermin Garcia Street, Cubao, Quezon City. Tel. 9122946, 9122973, Cebu Tel. (032) 273.3827, 238.3933 Email: rk@rkfranchise.com; Websites: www.rkfranchise.com, www.franchise.ph
