What is Franchising

Summary

The video script highlights the benefits of franchising as a scalable and teachable business model, emphasizing its growth and impact on job creation. It showcases the advantages for franchisees, such as brand loyalty, access to suppliers, and ongoing support. The script also underscores the importance of a banking partner that offers personalized service and tailored solutions to optimize and maximize the effectiveness of a franchise business, with Nedbank positioning itself as such a partner.

Takeaways

• 📢 Franchising is a scalable business model where a franchisor expands through a network of franchisees.
• 🚀 Successful brands often adopt franchising to replicate their proven concept across multiple locations.
• 🏪 Examples of franchised businesses include fast food restaurants, fuel stations, supermarkets, beauty salons, and tire service centers.
• 📈 The franchising market continues to grow annually, with over 5,000 new stores opening in 2018.
• 💼 Higher ownership by franchisees leads to more job creation, attracting more women to the market and enhancing access to favorite brands.
• 🌟 Franchising allows brands to reach consumers in new markets with less risk and provides franchisees with an established brand's loyal following.
• 🛠 Franchisees benefit from startup assistance, training, and the right to trade under a recognized brand name as part of the initial setup costs.
• 🔄 Ongoing support includes brand and product development, as well as marketing initiatives, in exchange for monthly royalty and marketing fees.
• 🤝 Success in franchising requires a banking partner who understands the franchising model and can provide tailored solutions.
• 🏦 Nedbank offers a unique banking approach with a dedicated banker who understands the franchisee's unique situation and provides national support.
• 📧 Interested parties can partner with Nedbank's franchising team by emailing the CEO for expert support in growing their franchise.

Q & A

What is the primary purpose of franchising in business?

The primary purpose of franchising is to expand a proven business model to a network of franchisees, allowing the brand to scale and grow with the help of new owners who operate under the established brand name.

What are some examples of successful franchised brands mentioned in the script?

Examples of successful franchised brands include fast food restaurants, fuel stations, supermarkets, beauty salons, and tire experts service centers.

How has the franchising market been performing in recent years?

The franchising market has been growing year-on-year, with more than 5,000 new stores opening in 2018, indicating an increase in ownership by franchisees.

What are the benefits of franchising for the economy and job market?

The benefits include creating more jobs across the country, attracting more women to join the market, and providing better access to favorite brands, which adds value to the people and the economy.

Why is it advantageous for franchisees to join an established brand?

Joining an established brand offers franchisees several advantages, such as a loyal following, consistency and quality in products and services, access to preferred suppliers, and lower costs, which increase spending power.

What kind of support do franchisees receive from the franchisor during the initial setup of the store?

Franchisees receive startup assistance, training, and the rights to trade under the brand name as part of the initial setup costs for the store.

What ongoing support and benefits do franchisees receive after the store is set up?

Ongoing support includes brand and product development, marketing initiatives, and the payment of monthly royalty and marketing fees.

What role does a banking partner play in the success of a franchise?

A banking partner plays a crucial role by understanding the intricacies of franchising, optimizing the business, maximizing its effectiveness, and providing personalized solutions that suit the franchisee's needs.

Why is it important for a franchisee to have a banking partner who takes a personal interest in their business?

A banking partner who takes a personal interest ensures a close working relationship, providing tailored solutions and support every step of the way, which is essential for achieving business ambitions.

What unique approach to banking does Nedbank offer for franchisees?

Nedbank offers a unique approach by providing each franchisee with a dedicated, local banker who understands their unique situation and can make decisions with the support of a national team.

How can potential franchisees get in touch with Nedbank's franchising team for partnership opportunities?

Potential franchisees can send an email to Nedbank's CEO to explore how the expert franchising team can partner with them to grow their franchise.