Do Business Well

Redundant military personnel, flush with cash received as termination pay for services rendered to their fatherland and anxious to make up for lost time, were roaming the streets, eagerly looking for ways to earn a good living. Not surprisingly, these people were reluctant to return to colleges or universities to complete their studies, which had been interrupted by government’s call to arms. They sought realistic ways to fast track their civilian careers instead.

But while these men and women possessed the required maturity and adequate funding to start small businesses of their own, they frequently lacked the skills they would need to survive in the hurly-burly world of business. This created a strong demand for a business format that would go further than the traditional product franchise. In addition to supplying a product, such a concept would have to offer a detailed blueprint that could be followed by individuals with no prior business experience. This led to the development of the business format franchise concept and the rest, as they say, is history.

Under this scenario, a new breed of entrepreneurs, people who had little desire to do things their way and reinvent the wheel in the process but wanted to maximise the profitability of their businesses, evolved. They were given intensive training, not only in the technical aspects of the business as had been done before, but also in business management. Once established in their businesses, franchisees would, in addition to having access to joint purchasing and promotional programmes, benefit by receiving ongoing guidance and management support for as long as the franchise agreement remained in force.

Established businesses, especially those in an early growth phase, welcomed this new concept with open arms, and why not? It enabled them to set up branch networks without having to make a significant investment into the infrastructure of each outlet. Strain on management resources was reduced, as the local owner would take care of day-to-day management, yet the franchise formula enabled these principals to exercise strict control over the use of the brand and the way in which it was to be presented to the public.

From the outset, franchising offered a win/win scenario and although it may have seemed to be too good to be true at the time, developments over the past five decades will have put any misgivings to rest.

Possibly related posts: (automatically generated)
Modern-day Franchising Part 2

• Business format franchise
• Relationship Franchise Agreement - Operations Manual
• Selling the Franchise
• Some Franchise Terminology
• Modern-day Franchising Part 3
• Is a franchise the optimal solution? From the prospective franchisor's viewpoint
• Modern-day Franchising Part 1
• The franchise agreement
• Investing in a franchise: Take it slow
• Mutual Expectations (franchisees) part 1

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