What is franchising? How to buy a franchise in Singapore? What are the benefits of franchising? And how can you run your own successful franchise with these tips and tricks from an expert? These questions will be answered in this blog post, so keep reading!
What is franchising?
A franchise is a business model where an entrepreneur rents out the use of their name and business methods to another party (the franchisee) in exchange for some form of payment. The franchisor doesn’t sell any goods or services, but he does provide support such as training on how to set up and run a successful outlet. A franchise can be highly profitable when done right because there are no start-up costs involved. The franchisor has already established a steady following before you enter into it, which means that your new customers will come with their old ones too!
How to purchase a franchise in Singapore?
Before anything else, you need to identify a franchise that fits your business goals and personal preferences. An excellent place to start would be the Singapore Franchise Directory which lists all active franchises in Singapore. You can also check out our list of the best brands from our website for inspiration!
Once you’ve decided on an ideal brand, make sure you do your research thoroughly before signing any contracts with them because everything must be clear between both parties. The last thing you want is the franchise backfiring on you.
You should set up a meeting with their team and ask as many questions as possible, so there will be no surprises later. You should also check out their franchise disclosure document (FDD), which will give you further insight into the brand’s philosophy, vision and practices. It may seem overwhelming to read through all of this information, but you must be aware of everything before signing your life away!
Once both parties have agreed on how much money gets paid for each month or year in royalties, as well as any additional costs involved, you can start setting up your new business location! Remember not to be too hasty with making decisions because every detail counts when running a successful outlet.
What are the benefits of franchising?
A franchise is an excellent way to start your own business and capitalise on an already established brand name. Your customers will come in with their old ones, which means that it’s much easier to attract new clients when compared to starting up from scratch. With the franchisor’s support, all we can guarantee is that there are no hidden costs or expensive surprises!
Franchising also has many other benefits such as:
- Ability to run a successful business without prior experience (the franchisor does most of the work for you!)
- No need for vast amounts of financial investment; low fees paid monthly/yearly via royalties or advertising
- Supportive community sharing ideas and experiences
- Customised training and support provided by the franchisor to help you run your business successfully
- It can be profitable in the long term if done right.
Examples of a successful franchise in Singapore
Starbucks Coffee
They are the largest coffeehouse company globally, owning more than 20% of all cafe sales worldwide. Their franchise is top-rated and successful because their outlets serve high-quality products at affordable prices with a wide range of drinks to suit everyone’s taste buds! They also have an extensive menu for breakfast and lunch so that you can stop by anytime you feel like it. It’s no wonder they boast over 17,000 locations globally!
Nando’s Peri-Peri Chicken
Another well known global chain that has opened up its first Singapore outlet recently (and if we know our local food scene, then there will be queues around the block soon enough)! This particular brand specialises in serving delicious, marinated chicken with a choice of different spices and flavours that can be served in many ways. Although their dishes are popular worldwide, they have also tailored to the Singaporean palate by introducing local favourites such as Sio Bak (Crispy Pork Belly) on the menu!
Charles & Keith
If you are looking for a more feminine touch to your business, then this brand may be one of the best options out there! Charles & Keith is globally recognised as being an authority in women’s footwear and accessories. They have over 1000 outlets worldwide with many celebrities wearing their shoes on the red carpet! The great thing about choosing this franchise is that they do not require any experience or qualifications, so it could suit anyone who wants to start their own business without breaking the bank.
In conclusion, starting up a franchise is an excellent way to invest in the future of your business. There are many barriers to entry which means that it can be complicated for new firms to make their mark on the market, but if you decide to become part of this community, there will always be support available when you need it most!
