What is Franchising
Summary
TLDRThe 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.
Outlines
🏪 Franchising as a Business Expansion Strategy
The first paragraph introduces franchising as a business model where a franchisor expands their proven business concept through a network of franchisees. It emphasizes the importance of scalability and the teachability of the business model, product, and systems. The paragraph highlights the success of well-known franchises in various sectors like fast food, fuel stations, supermarkets, and beauty salons. It also mentions the growth of the franchising market, noting the opening of over 5,000 new stores in 2018 and the benefits this brings, such as job creation, increased female participation, and better access to favorite brands. Franchising is portrayed as a way to capture new markets with less risk, offering franchisees support in startup assistance, training, and ongoing support in brand and product development.
Mindmap
Keywords
💡Franchising
💡Franchisor
💡Franchisees
💡Scalability
💡Teachable
💡Market Growth
💡Ownership
💡Job Creation
💡Banking Partner
💡Dedicated Banker
💡National Support Team
Highlights
Franchising is a scalable business model where a franchisor expands through a network of franchisees.
The success of a franchise depends on the scalability and teachability of its business model, product, and systems.
Popular franchise sectors include fast food, restaurants, fuel stations, supermarkets, beauty salons, and tire services.
The franchising market has been growing annually, with over 5,000 new stores opening in 2018.
Franchising offers more ownership opportunities and creates jobs, attracting more women to the market.
Franchising provides access to favorite brands and brings value to people, South Africa, and the future.
For brands, franchising allows capturing new markets with less risk and an established customer base.
Franchisors offer franchisees startup assistance, training, and the right to trade under a recognized brand name.
Franchisees benefit from ongoing support, product development, and marketing initiatives.
Franchisees pay monthly royalty and marketing fees for the support and brand access they receive.
Success in franchising requires a banking partner who understands the intricacies of the business model.
A good banking partner focuses on optimizing the business and maximizing its effectiveness.
Nedbank offers a unique banking approach with a dedicated banker for each franchisee.
Nedbank's dedicated bankers understand the local context and can make informed decisions with national support.
Nedbank's franchising team can partner with you to grow your franchise and achieve business ambitions.
Interested parties can email Nedbank's CEO for more information on how to partner for franchise growth.
Nedbank encourages a different perspective on finance, promoting a 'see money differently' approach.
Transcripts
franchising is a business model whereby
a brand the franchisor
would expand their footprint of a proven
concept to a network of franchisees it's
important that the business model
product and systems are scalable and
teachable to new franchisees if it's a
successful brand chances are that it has
been franchised think fast foods
restaurants fuel stations supermarkets
beauty salons tire experts service
centers the list goes on and the
franchising market keeps growing
year-on-year which is great news for
franchises franchisees and potential
franchisees in 2018 more than 5,000 new
stores open and there is now higher
ownership by franchisees more stores
means creating more jobs across the
country more women joining the market
and better access to your favorite
brands that's real value for our people
for South Africa and for our future for
brands franchising means getting to the
people where they are capturing new
markets in a competitive environment
with less risk for franchisees it means
not having to start a business alone an
established brand has a loyal following
offers consistency and quality along
with access to preferred suppliers which
lowers costs and increases spending
power franchisees get startup assistance
training and the rights to trade under a
brand name this all forms part of the
initial set up costs for the store they
also benefit from ongoing support brand
and product development and marketing
initiatives as a result of paying
monthly royalty and marketing fees but
success is not just about a brand you
need a banking partner who understands
the ins and outs of franchising a
partner who focuses on optimizing your
business and maximizing its
effectiveness a partner who takes
personal interest in your business to
provide you with the right solution that
suit your need
a partner who you can trust to work
closely with you every step of the way
and help you achieve your business
ambitions you need a banking partner
with a unique approach to banking
that's not one size fits all with
Nedbank you get your own dedicated
banker someone local who understands
your unique situation and can make
decisions with a backing of our national
support team to find out how our expert
franchising teams can partner with you
to grow your franchise send an email to
franchising and Ned banks CEO today see
money differently
Ned bank
you
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