There was an article published recently by a well-known expert on the subject. The article discussed the factors responsible for the change in trends in the franchise business at the international level. After properly analyzing the report, some important findings surfaced which we will like to share with the readers.
The way franchise business has been performing in the recent times has changed and new trends have compelled the franchisors to avail value added services in order to capture new markets. Some important factors affecting franchise businesses are:
Competition: The competition among different franchise business is getting severe, as new players have joined the markets. In India the trend has been most observed in the establishment of fast food chains and retail outlets. As the competition in particular segment increases, the franchisors have to devise new strategies to keep ahead of the competitors.
Value Added Services: The transfer of technology, technical know-how and assistance have become the basic amenities to be provided by the franchisors. The franchisors have added new services like internal communication systems, software support, etc., to add value to the franchisor’s services and assistance.
Customer Needs: As globalization continues to show its marks, the customer behaviour has become hypercritical. The customer has a number of options and loyalty can easily be breached. This has led to the customization of services and products according to the needs of the people. Franchisee plays a prominent role in it and keeps the franchisor updated with customer feedback. It is one of the major factors affecting franchise business nowadays.
Legal Environment: Though the implications of the changing legal systems have a least effect on the franchise business, but it may be significant if the laws pertain to the proprietorship or any aspect of business operations.
These are some of the major factors that have shaped the franchise business in the country.