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From the point of view of an investor, what do you think about the franchise business in the retail industry?

Do you find it straight forward and simple in its operation? Or it depends on the partner? Do you have personal experiences, or have worked in a franchise business model? Please tell us what do you think.

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Question added by Ahmed Elkhodiry , Regional Consultant , Euromonitor International
Date Posted: 2013/11/11
amer jayyousi
by amer jayyousi , Business Development Consultant , freelance

from the point of view of an investor we think of value and profits.

if you can prove that to me i will invest,that is the rule all investors are making as a standard.

you have to be very innovative and precise, the costs associated with such retail franchises cannot be redeamed if the operation fails.

a thourough study and analysis is required now days.

unless you have a brand name that is already famous else where,you might need to work harder than the potential gains.

Deleted user
by Deleted user

Retailing is one of the most important types of investments,

But we must manage it properly and accurately,

We must also know the need of the market to this investment first,

Then start thinking about the project in a practical and more serious,

But it's a good project and a successful and wonderful...

IRPHAN GHANI
by IRPHAN GHANI , Senior Management , A

If the brand is established the margins will be low but the returns can be high on volume. Cost of selling will be less as the effort and time involved will be less.

In reverse situation the result will be just the opposite.

 

One needs to analyse the demand of the product in the targeted market and work out the ROI and then take a final call. If the demand permits and the product acceptability is good then it's worth.

This is simple trading and majority of the GCC market is on simple trading.

Virendra Singh
by Virendra Singh , India Representative/ Consultant , MM ONE GROUP SRL (Italy) BOOKING ONE

In retail sector franchisee business model is very successful. The investor has to put less investment & expect high yields. But nowadays due to the boom in retail sector it has become less profitable business .many reatilers has to shut their shop down.

The same retails shop in other shopping malls makes consumer to have various options. Thus franchisee has very optimal profits.

Ashraf Alsinglawi
by Ashraf Alsinglawi , Medical Supply Chain Planner , International Committee of the Red Cross

Spend more time on getting best mutual contract to avoid any expected destructive consequences.

Abdulelah Fallatah
by Abdulelah Fallatah , Tech-Support Specialist & Programmer , Al-Rayan Colleges

To put it simply, it increases your profit. :)

Haseeb Khalid
by Haseeb Khalid , Sales and Promotion Manager. , Medi Urge

Franchise business normaly fix low ROI but can save your money in long term and less marketing budget. for example If you have franchise of Sony margin ll be very low compare to other local products but you dont have to worry much about customer  and marketing.

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