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