Who is the franchise for?
The number of entrepreneurs operating franchisees has tripled in the last 9 years. What is the reason for the growing popularity of this business model? Who becomes the franchisee most often?
It is estimated that in 2014 the number of companies operating based on a franchise agreement may reach 63,000. According to industry reports, every third enterprise operating in this model is run by people for whom it is their first business activity. What makes them try their hand at this type of business?
Experience - useful, but not essential
The essence of franchise agreements is the possibility of drawing on the know-how and proven, profitable business concept of a given chain. Usually, all information necessary to start work is provided during training sessions organized by the franchisor. However, education, interests and work experience in a given industry can be a catalyst for success.
An example may be teachers who, in recent years, due to the demographic decline, have faced the need to find an alternative job. For those who see their professional career in working with children and young people, establishing their own facility turns out to be a good solution. An interesting niche is, for example, the area of education in the field of mathematics. Due to the introduction of an obligation to pass it at the matura exam and the presence of diagnostic tests, more and more parents are looking for supplements for school education. So there is a growing demand for effective science education. - Demand for extracurricular maths is greater than ever before. Therefore, our country has a dynamically developing franchise network of teaching centers for this subject - says Małgorzata Grymuza, Master Franchisor MathRiders Polska. - As part of our structure, people with experience are great at being
Own business with reduced risk
An important reason why novice entrepreneurs decide to take advantage of the franchisors' offer is a safer start than in the case of full independence. Particular networks require their partners to fulfill specific requirements related to premises conditions, marketing activities and compliance with the assumptions of the business plan. This restriction of freedom is to ensure that the franchisee will follow a proven path set by his predecessors and is to increase the probability of market success despite the lack of thorough knowledge of the mechanisms governing a given industry.
For the same reasons, franchising is also an interesting solution for experienced entrepreneurs who, operating in a specific sector, would like to expand into other markets. It seems that this is quite a popular solution - according to research, experienced businessmen constitute 2/3 of all franchisees. Most often they are people open to new ideas, at the same time being cautious and appreciating working with a proven concept.
