Bibingkinitan CEO Richard Sanz joined Philippine Franchise Association (PFA) chairman in a webinar were he shared his franchising tips.
Franchising is about replicating your business. It does not make a business profitable.
Hence, if a business is losing money, franchising will just replicate an unprofitable business.
Richard Sanz shared 3 simple tips to make sure you start your franchise journey right.
1- Determine the viability of your business model before franchising
Franchising has a multiplier effect.
If your business is currently doing great, franchising will multiply and enhance your success.
This means that the success rate of franchising your business depends largely on your current business model or prototype… whether it’s simple, relevant, quality, and profitable.
But if your business is already experiencing some problems, franchising will only multiply your problems.
Determining the viability of your business model is definitely the top priority even before you go into franchising.
2- Know your market well
Businesses who go into franchising have a vision of scaling up to dozens, hundreds and even thousands of stores.
You will need many locations for your franchised stores. So, one of the most vital things is to know your market well so you will know where to expand.
Knowing your market also helps in determining the correct product mixes, local store marketing and promotions your franchisees should run.
All critical ingredients to the success of your franchise network.
3- Have a structure for location evaluation so you will know the right location
The challenge does not end in identifying and finding the right location.
A franchisor also has to secure that location.
Having a system or mechanism to rigorously evaluate if a location is right for your business is therefore crucial.
You can designate an expert locator among your staff or you can set up a team who will be responsible for store location evaluation and acquisition.
The importance of store location lies in its capability to affect or determine sales and performance.
About Bibingkinitan
Bibingkinitan is a native Filipino delicatessen. In Tagalog, it’s called kakanin.
Bibingkinitan (BBK) first opened in 2006 with a mission to reinvent the bibingka experience by making it smaller and available throughout the Philippines all year around.
Believing in the quality of Filipino cuisine, BBK created a unique “for Filipinos by Filipinos” supply chain by employing fresh ingredients from local farms all over the country.
Of there many franchised stores, they opened one in Dubai!
Source.
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