FRANCHISING, BISNIS YANG UNTUNG ATAU BUNTUNG?🙀 | Podcast Wirausaha Eps. 2 - Moh. Erfan, S.E, M.M.

Summary

Pak Erfan, an experienced franchise owner, shares valuable insights on managing a successful franchise business, emphasizing the importance of following standard operating procedures (SOPs) and maintaining product consistency. He discusses the challenges of employee turnover and quality control, and how innovation in marketing can help a franchise stay competitive. Pak Erfan also highlights the prospects for franchising, especially for startups with limited resources, and offers advice for aspiring franchisees, including the importance of legal protections and brand recognition. The conversation provides practical lessons for navigating the complexities of the franchise industry.

Takeaways

• 😀 The franchise model requires strict adherence to operational standards, especially regarding product offerings, and improvisation is discouraged unless explicitly outlined in the franchise agreement.
• 😀 While franchisees can innovate in marketing strategies, such as using social media or collaborating with online platforms, product changes (e.g., adding new items) must be approved by the franchiser.
• 😀 Regular stock reports from the franchiser help franchise owners control and monitor sales, track ingredient usage, and identify discrepancies, especially in high-turnover businesses like fast food.
• 😀 Employee turnover is a challenge for franchise owners, especially when they have limited time to supervise operations, making it essential to track stock and sales data to maintain control.
• 😀 Innovation is crucial for staying competitive in the franchise business. If the franchise product offering stagnates while competitors innovate, the franchise risks losing customers.
• 😀 Understanding the operational details of a franchise is important for expansion. Once a franchisee understands the nuances of the business, they are better equipped to open additional locations.
• 😀 The success of the franchise model depends heavily on the economic conditions of the region, particularly consumer purchasing power. A favorable economy can boost franchise growth.
• 😀 Franchise growth offers an effective way for startups to expand without significant capital, by utilizing franchisees as distribution partners to scale the business quickly.
• 😀 Aspiring franchisees should ensure the franchiser’s legal and intellectual property protections are in place, and the brand is well-established before committing to a franchise agreement.
• 😀 To avoid potential pitfalls, franchisees should thoroughly research the franchiser’s reputation and the long-term viability of the business model before entering into a franchise agreement.
• 😀 The speaker encourages aspiring entrepreneurs to learn from the experiences of established franchise owners and to carefully consider the franchise model as a viable business opportunity.

Q & A

What is the primary challenge faced by franchisees in the fried chicken business?

The primary challenge for franchisees in the fried chicken business is maintaining consistent product quality and adhering to the franchiser's established operating procedures, which includes not making unauthorized changes to the product offering.

Can franchisees make changes to the products they sell, such as adding new items like French fries?

No, franchisees cannot add new items like French fries unless it's part of the franchiser’s established product line. Any product improvisation or changes are strictly prohibited to maintain brand consistency and quality control.

What is the role of social media and online platforms in franchisee marketing?

Franchisees are encouraged to use social media and collaborate with online platforms to promote their business. These efforts are supported by the franchiser as long as they align with the overall brand strategy, but they should not involve changes to the core products.

How does Pak Erfan manage employee turnover in his franchise business?

Pak Erfan manages employee turnover by monitoring inventory and sales through stock point reports provided by the franchiser. This allows him to keep track of sales and ensure that employees are following correct procedures, despite staff changes.

Why is innovation important for a franchise business to remain competitive?

Innovation is important because consumer preferences change over time. If a franchise business stagnates and does not introduce new ideas or products, it risks being overtaken by competitors who are adapting to current trends. Innovation helps maintain customer interest and brand relevance.

What are Pak Erfan’s plans for expanding his franchise business in the future?

Pak Erfan plans to expand his franchise by first focusing on opening more locations and refining his knowledge of the business. By understanding the strengths and weaknesses of different locations, he aims to optimize the scalability of the franchise and identify the best areas for future growth.

How do economic conditions affect the success of franchise businesses in Malang?

Economic conditions, particularly consumer purchasing power, play a significant role in the success of franchise businesses. If the economy is stable or improves, the prospects for franchise businesses are positive, as they can expand and attract more customers. A decline in purchasing power, however, can hurt the franchise model.

What advice does Pak Erfan offer to aspiring franchisees?

Pak Erfan advises aspiring franchisees to ensure that the legal and formal requirements are met, including securing intellectual property protections like trademarks. They should also evaluate the future prospects of the business and the reputation of the franchiser to avoid potential risks and ensure long-term success.

What is the importance of intellectual property (IP) protection for franchise businesses?

Intellectual property protection is crucial for franchise businesses as it ensures that the brand, logo, and other assets are legally safeguarded. This prevents unauthorized use and helps maintain the franchise's value and integrity, which are vital for its continued growth and success.

How does the franchising model benefit startups with limited resources?

Franchising allows startups to expand quickly and effectively without needing significant capital investment. By partnering with franchisees, a business can open new locations with the help of external investors, thereby expanding its reach while minimizing financial risk and resource limitations.