Feasibility of the Franchise - An overview

One thing fast-food market giants KFC, Mc Donald’s and Domino's all have in common is the power of numbers. Their continued and growing success is an accumulation of the perks that come with being part of a large network. Franchising has enormous benefits and is also plagued with its drawbacks but when operated under an organised, tested environment can prove to be very profitable from top to bottom. This business model does not just work for fast-food retailers, its profitability is demonstrated in the fashion, oil and gas, agriculture and real estate industry to name a few.

For the sake of clarity, a franchise is a license that permits the franchisee access to the proprietary knowledge, processes and trademarks to allow the party sell a product or provide a service under the businesses name. Will this work sustainably in Nigeria? Yes. Yes it will.

Looking inwards, the likes of Chicken republic, Mr Biggs, Shoprite, Nike, MAC etc. support this conviction that when executed with precision, the franchise system at national and international level will work. Here are some reasons why:

1.    The selling power of an established brand

Building rapport with an ideal customer base is not an easy task to execute for a start-up and even when it has been established on a comfortable scale, the need to grow and expand will arise. In an ideal franchise system, one of the key benefits remains the immediate brand awareness that lies with the consumers actively and inactively seeking the good or service offering.

2.    Shorter time to opening, Initial training and ongoing support

The opportunity cost of getting a franchise is the freedom that comes with doing your own thing. With a franchise, you have given up a certain degree of your independence (this varies from organisation to organisation) as franchisers exert some control over brand standards, goods and service coverage and so on. Because it is a model that works, Franchisers understand this and so they help ease the transition with extensive support and training. In addition, some franchisers alleviate the burdens of tiresome start up through their network of contacts and lower costs achieved through economies of scale. With a franchise, you are not alone from the start.

3.    National and regional advertising

Have you ever seen a catch phrase or a heard jingle so awesome that you wish you had thought of it yourself? Well with a franchise system in place, the franchisee is free to use that and all other marketing material that was before them. Brand awareness is centralised with the franchiser bearing the costs and stress of advertising, all International, national and regional campaigns are available for use by franchisees.

4.    Higher chance at success

T.E.A.M – Together, Everyone Achieves More. This benefit is somewhat self-explanatory as it rides on the fundamental principles of team work and the concept  of the ‘wolf pack’. A franchise system that works, provides the franchisee with all the necessary tools for success. The franchisee can rely on an established business model that is often customisable to suit market forces to foster their development and ultimately, success.

Other benefits of a franchise include moral support through the network of co franchisees and franchise associations, customer generation and leads and economies of scale through group purchasing. The beauty of the franchise system is the security and integrity it brings to an already established business and/or a start-up.

RE/MAX Nigeria is a franchise owned Real Estate establishment with its headquarters, RE/MAX LLC. In Denver Co. RE/MAX is currently present in 97 countries worldwide through a network of independently owned and operated franchise offices, amassing a whopping 100,000 top performing agents in these locations. RE/MAX is the number one seller of real estate worldwide and remain the market leader in several countries that hold the trademark RE/MAX hot air balloon.

RE/MAX Nigeria will become the market leader in the dynamic industry that is real estate and we call on hardworking resilient people of integrity to be a part of this journey through franchises. An established real estate broker or someone with no prior experience can take advantage of this opportunity to grow a legacy that they can leave behind for generations to come. We are here to help every step of the way.

To find out more please contact Chisom Olisaemeka – colisaemeka@remax.ng & 0700-GO-REMAX