INTRODUCTION TO THE FRANCHISE SYSTEM

ROLE OF FRANCHISEE

     
:: WHAT THE FRANCHISEE MUST DO ::

• First and foremost, the franchisee must remit the first amount franchise fee to the franchiser as agreed
• Prepare investment resources
• Select the best possible branch location
• Attend training courses provided by Slimming & Spa at the company’s headquarters and on-the-job training at an actual center
  

:: ADVANTAGES FOR THE INVESTOR IN FRANCHISING ::

• In the franchising business, the investor is the owner of the business. Although they use the franchiser’s name and trademark, the franchisee is neither staff, nor are they employed by the franchiser.
• They avoid having to organize the most efficient work process and lengthy market trial period, as well as the risk in consumption trend, meaning that the franchisee does not have to start from day-one. The franchisee may select only the products or services that have proven popular among consumers and are considered to have a good demand among target consumers in new branches, most especially the cellulite elimination, facial care and body shaping treatments. These areas of treatment in most rival institutes are not highly effective and results are not guaranteed, nor proven through extensive research studies, as those provided by Slimming & Spa.
  

:: WEAK POINTS OF FRANCHISING์ ::

• Lack of freedom in business operation for the investor, who must follow the principals and regulations established by the franchiser, thus it is not recommended for those who already operate a similar type of business.
• The franchisee must remit payments as agreed in the contract. Payments include preliminary operation fee, average advertising budget, cost of other printed documents such as forms, plus a royalty fee to be paid on a variable monthly, annual, or installment period, depending on the agreement.
• Although the franchise business tends to reduce the risk, shorten the market trial period and gain technology transfer, it is not magic - and success is not 100 per cent guaranteed without appropriate hard work. Franchisees also have to be committed to maintaining good management.
  

:: WHAT IS FRANCHISING? ::
Franchising is a channel of product distribution, or rendering services via chain stores within a franchise system. As a rule, there are at least two individuals involved in the business:

• Franchiser: They hold the rights of the franchise business and permit the franchisee to use the store trademark and trade name.
• Franchisee: They have to pay a royalty fee and preliminary operation fee to the franchiser to obtain the right to operate the franchised business using the franchiser’s trade name, as mentioned in the franchising contract.

            

:: WOULD I BE SUCCESSFUL IN THE FRANCHISING BUSINESS? ::
A successful franchisee is someone who is fit in all aspects for the business and likely to be a valuable asset to the franchiser. They must also work well in the franchising environment. Before making any commitment, the franchisee who wishes to be in the beauty business, must answer these basic questions: “Am I really interested in this kind of business?” “Am I ready to commit myself to hard work and financial risk?” “Am I stubborn, with a disregard for authority, or am I open to suggestions?” “If I wish to be a non-aggressive franchisee, will the franchiser accept me?” “How do I personally feel about the reputation, products and services of the franchiser?” Positive answers to these questions will determine whether you have the potential to be a successful franchisee.

:: HOW WILL I BE CERTAIN NOT TO LOSE MONEY? ::
No one can give a 100 per cent guarantee of success in franchising operations. Although there are a lot of successful franchisees, there are also many who have suffered financial loss. You must be aware of franchisers who “guarantee” earned income, or absolute success. If your hear such overly stated information from a franchiser that is too good to be true, you should pay very close attention and find out the truth, most especially concerning financial earnings. You have to remember that your success comes from your hard work only. You are the only one who can create your destiny, be it success, or failure.