Many entrepreneurs would like to take more risk-free and solid steps in the process of establishing their own business. In that case, the franchise system stands out as an attractive option for entrepreneurs. This system provides important opportunities for those who would like to both progress with support and be a part of a strong structure. So, what exactly is the franchise system and what advantages does it offer to entrepreneurs? You can take a look at our article to get detailed information about the franchise system and ways to make a strong start with this system.
Franchise, a word of French origin, means privilege and authorization in Turkish. It is possible to define this concept as the granting of the right to use a brand or business model to another person or business within the framework of certain rules and conditions.
In this system, the entrepreneur gets the opportunity to work under the roof of a brand with high market share and recognition. Since creating a new brand is expensive, the name, logo and business of the existing brand are usually purchased, and a dealership is opened.
There are two parties in the franchise system: franchisor and franchisee. We can detail them as follows:
The franchise system provides many advantages for entrepreneurs who are new to the business world. Since it is based on a ready and tested business model, it significantly reduces the risks in the process of creating a brand from scratch.
The advantages that are offered by the franchise system can be detailed as follows:
The franchisee has the right to use the name of a brand that has proven itself, is known and preferred by a wide customer base. This greatly facilitates the "trust building" process, which is one of the most common difficulties encountered when establishing a new business. Consumers are more positive and enthusiastic about brands that they have experienced before or heard about from people around them. A familiar logo, a familiar menu or service can increase the sense of trust in the customer. For this reason, it is possible to say that a newly opened franchise branch can gain customers faster than a business that is established from scratch.
Franchisor provides comprehensive training and support services to franchisees so that their brands can maintain certain quality standards and operations can run smoothly. The main topics that are covered by these trainings are:
In addition, the franchisor continues to provide consultancy and operational support at every stage of the business. Training and support services in the franchise system make a significant contribution to the integrity of the brand and the success of the entrepreneur.
Reaching the target audience and creating brand awareness are among the most difficult issues when establishing a new business. In the franchise system, this responsibility is undertaken by the brand's head office. Thanks to the advertising content, promotional videos and campaign strategies that are prepared by the professional teams, the franchise branch can attract the attention of the target audience in a short time. This also helps franchisees gain a place in the market faster.
In the franchise system, all business processes are planned in advance and are based on a model whose success has been tested. Many details such as how the services will be provided, pricing policies, decoration standards, which products will be presented and how, which campaigns are effective, the expectations of the target audience, store layout plans, and customer services are determined from the very beginning. In this way, the franchisee does not have to go through a trial-and-error process from scratch by directly applying the ready-made model. Thus, it saves both time and financial resources.
The franchise system also offers entrepreneurs significant advantages in terms of access to financing. Banks and various financial institutions see franchise investments as lower risk. The main reason for this is that the franchise system is usually a business model that has been implemented before, has proven success and is carried out under the roof of a strong brand.
Since the franchisee is part of a proven system rather than an unknown brand or an inexperienced initiative, they are also considered more reliable in terms of creditworthiness. This can also make it easier to access the initial capital that is needed during the establishment phase of the business.
Elite World Hotels & Resorts serves its guests and business partners with its deep-rooted experience of nearly 50 years. It opens the doors of a delightful world by blending the latest technology, local and current trends with the services that it offers without compromising on quality.
With its entrepreneurial and innovative approach in the tourism industry, Elite World Hotels & Resorts continues to increase its investments every day and provide the highest quality service. It helps its investors achieve their goals with its brands that are ranging from economy to luxury segments. Elite World Hotels & Resorts, which allows you to start your business one step ahead with its franchise program, also adds value to your investments with name rights, business management, new hotel design and transformation opportunities.
You can contact Elite World Hotels & Resorts to achieve your goals and join the franchise program that provides professional support at all stages of your business activities.
