You can expand your business at a very fast pace in many different ways. Franchising is one of those ways. It has become a popular method that has been embraced worldwide. What happens is that you use another person’s business philosophy after paying for the rights to use it. The franchiser will grant you the rights to make money by distributing its products, trademarks and techniques. They get a certain percentage of your gross monthly income as well as a royalty fee. Can you franchise your own business? Well, it will depend on how your business operates. If your products are unique or can be replicated then you can do better with a franchise.
Does Franchising Make Sense?
Franchising a business sounds like a good way to expand, it’s not right for all business. Your business should be profitable and your business model must be a model that can be duplicated successfully. It should also be a model that can return an adequate return for the franchisee.
If you are a new startup, in most cases, franchising doesn’t work. Due to the fact that franchising a business will require you to supply materials, office supplies, and business plans, in most cases, new startups are not in a position to franchise their business model.
Do you know how your business operates precisely? As a franchisee you will require the exact details to get your business running. Although it takes long, planning will help your business operate smoothly particularly if you decide to franchise it. As a franchisor you should ensure that you have an operations manual that clearly spells out your detailed policies as well as best practices.
Get Legal Advice
If you want to franchise your business you will require some legal advice. There are some important points of franchise law you should familiarize yourself with. You will also need to fill out documents such as the franchise disclosure document with the help of an attorney.
Some processes like setting price, creating a franchise agreement as well as determining intellectual property protection can’t be done in the right manner without the help of an experienced attorney.
Develop Your Franchise Model
Most people are familiar with the traditional model of franchising a location. There are many different types of franchise models available. Here are the most common:
Business Format Model - This is the most common type of franchising model. In this type of franchise, a company expands by supplying independent business owners with an established business, including its name and trademark.
Manufacturing - In this model, a franchiser grants a manufacturer the right to produce and sell goods using its name and trademark.
Product Franchising - In this agreement, manufacturers allow retailers to distribute their products and to use their names and trademarks.
Some other important decisions you will need to make are whether your franchise is going to charge a franchise fee or a royalty percentage, the geographical locations of the franchises and how you will market them.
Choose Your Franchisee Wisely
When choosing franchisees you should be extremely careful. You will find a lot of people with capital and you will have to be very careful again to determine if they are the right kind of people. Check their background to find out if they have the ability to successfully run the business. These people will be representing you and they have to do so accordingly. Your main reason for franchising your business is to protect and grow it. Come up with an interviewing procedure so that you end up working with only the people that meet the standards you have set.
Grow and Protect Your Business
Your brand is your most valuable asset and as a franchisor you should work hard to grow and protect it as much as possible. You have worked very hard to earn your brand a good reputation. The biggest risk when it comes to franchising is that you give other people the opportunity to represent your brand.
Ensure that you have laid out guidelines that will control the usage of brand assets. Some people may take advantage and use your brand assets inappropriately if you haven’t laid down such guidelines. Nobody should take advantage and use your brand assets inappropriately or without your authority.
To be successful ensure that you monitor pictures, videos and social media outlets regularly and in a detailed manner.
Offer Support to Your Franchisees
You will have to meet your franchisees personally or talk to them every now and then via the phone or online. Do everything you can to motivate them when they have made an achievement. Share with them important information and also make sure that they have a way to communicate with one another.
This article was first published on StartUp Mindset.
Women of the Middle East have made significant strides in the past decade in a number of sectors, but huge gaps remain within the labor market, especially in leadership roles.
A huge number of institutions have researched and quantified trends of and obstacles to the full utilization of females in the marketplace. Gabriela Ramos, is the Chief-of-Staff to The Organization for Economic Co-operation and Development (OECD), an alliance of thirty-six governments seeking to improve economic growth and world trade. The OECD reports that increasing participation in the women's labor force could easily result in a $12 trillion jump in the global GDP by the year 2025.
To realize the possibilities, attention needs to be directed toward the most significantly underutilized resource: the women of MENA—the Middle East and North African countries. Educating the men of MENA on the importance of women working and holding leadership roles will improve the economies of those nations and lead to both national and global rewards, such as dissolving cultural stereotypes.
The OECD reports that increasing participation in the women's labor force could easily result in a $12 trillion jump in the global GDP by the year 2025.
In order to put this issue in perspective, the MENA region has the second highest unemployment rate in the world. According to the World Bank, more women than men go to universities, but for many in this region the journey ends with a degree. After graduating, women tend to stay at home due to social and cultural pressures. In 2017, the OECD estimated that unemployment among women is costing some $575 billion annually.
Forbes and Arabian Business have each published lists of the 100 most powerful Arab businesswomen, yet most female entrepreneurs in the Middle East run family businesses. When it comes to managerial positions, the MENA region ranks last with only 13 percent women among the total number of CEOs according to the Swiss-based International Labor Organization (ILO.org publication "Women Business Management – Gaining Momentum in the Middle East and Africa.")
The lopsided tendency that keeps women in family business—remaining tethered to the home even if they are prepared and capable of moving "into the world"—is noted in a report prepared by OECD. The survey provides factual support for the intuitive concern of cultural and political imbalance impeding the progression of women into the workplace who are otherwise fully capable. The nations of Algeria, Tunisia, Morocco, Libya, Jordan and Egypt all prohibit gender discrimination and legislate equal pay for men and women, but the progressive-sounding checklist of their rights fails to impact on "hiring, wages or women's labor force participation." In fact, the report continues, "Women in the six countries receive inferior wages for equal work… and in the private sector women rarely hold management positions or sit on the boards of companies."
This is more than a feminist mantra; MENA's males must learn that they, too, will benefit from accelerating the entry of women into the workforce on all levels. Some projections of value lost because women are unable to work; or conversely the amount of potential revenue are significant.
Elissa Freiha, founder of Womena, the leading empowerment platform in the Middle East, emphasizes the financial benefit of having women in high positions when communicating with men's groups. From a business perspective it has been proven through the market Index provider MSCI.com that companies with more women on their boards deliver 36% better equity than those lacking board diversity.
She challenges companies with the knowledge that, "From a business level, you can have a potential of 63% by incorporating the female perspective on the executive team and the boards of companies."
Freiha agrees that educating MENA's men will turn the tide. "It is difficult to argue culturally that a woman can disconnect herself from the household and community." Her own father, a United Arab Emirates native of Lebanese descent, preferred she get a job in the government, but after one month she quit and went on to create Womena. The fact that this win-lose situation was supported by an open-minded father, further propelled Freiha to start her own business.
"From a business level, you can have a potential of 63% by incorporating the female perspective on the executive team and the boards of companies." - Elissa Frei
While not all men share the open-mindedness of Freiha's dad, a striking number of MENA's women have convincingly demonstrated that the talent pool is skilled, capable and all-around impressive. One such woman is the prominent Sheikha Lubna bint Khalid bin Sultan Al-Qasimi, who is currently serving as a cabinet minister in the United Arab Emirates and previously headed a successful IT strategy company.
Al-Qasimi exemplifies the potential for MENA women in leadership, but how can one example become a cultural norm? Marcello Bonatto, who runs Re: Coded, a program that teaches young people in Turkey, Iraq and Yemen to become technology leaders, believes that multigenerational education is the key. He believes in the importance of educating the parent along with their offspring, "particularly when it comes to women." Bonatto notes the number of conflict-affected youth who have succeeded through his program—a boot camp training in technology.
The United Nations Women alongside Promundo—a Brazil-based NGO that promotes gender-equality and non-violence—sponsored a study titled, "International Men and Gender Equality Survey of the Middle East and North Africa in 2017."
This study surveyed ten thousand men and women between the ages of 18 and 59 across both rural and urban areas in Egypt, Lebanon, Morocco and the Palestinian Authority. It reports that, "Men expected to control their wives' personal freedoms from what they wear to when the couple has sex." Additionally, a mere one-tenth to one-third of men reported having recently carried out a more conventionally "female task" in their home.
Although the MENA region is steeped in historical tribal culture, the current conflict of gender roles is at a crucial turning point. Masculine power structures still play a huge role in these countries, and despite this obstacle, women are on the rise. But without the support of their nations' men this will continue to be an uphill battle. And if change won't come from the culture, maybe it can come from money. By educating MENA's men about these issues, the estimated $27 trillion that women could bring to their economies might not be a dream. Women have been empowering themselves for years, but it's time for MENA's men to empower its women.