The best occasion of concession - how to determine it

The decision to obtain a concession is only the first of several important decisions which a possible distributor will have to make. The next one determines the best occasion of concession.

The best occasion of concession is a totality of many factors. These factors are as the parts which compose a totality. They function together to carry out a salutary result.

First of these factors is the prospect 'financial possibilities for S or easy access to the financing since a great number of money is required for the fees of concession, the installment on the lease if it is adapted, and other expenditure. In addition to being financially ready, it should make a complete examination of conscience to determine its personality and preferences so that it can find the good kind of businesses which will match its model.

Preferably, the prospect must have led its clean seeks and market research before installing a meeting with the franchisor. This will enable him to be enqu�rir intelligently about the important details relative with the company and of arrangements under the concession. In this way, it does not start something which it does not know much, where it will have to depend mainly on the franchisor for information. This kind of information is dubious since it was already published to be raised with a presentation strongly in a way convincing of concession.

By raising questions, the prospect must request the important information of this type about the track records of the company in so far as its concessions are concerned; how made to him is in the supply continues support with the concession and to ensure its success; how much effective its training programs and marketing is; and if the company has a continuous programme of research and development of product to make the updated deals and competing. The franchisor must be able to provide this information to the prospect with the 'satisfaction for S.

If the businesses are large and enormously popular on the market, its network of concession is most probably successful. Consequently, only the fees of concession will cost the prospect by large amount for money. If it does not have the financial possibilities requested by large companies, next the best thing is to seek a less known company which has a high potential of the market but lower fees of concession. However, the risks implied here are certainly higher than with a concession of large-company.

By considering the offer of concession of a less popular franchisor, the prospect must undertake a complete study on the bottom of the company, its current management, and the potential of the market of its products or the services in its place envisaged of businesses. It must also be able to find answers justified to the following questions: Is the concept of businesses enough innovating to attract customers? Will it draw enough interest for the market to make the faithful customers? Company wanting to distribute a reasonable budget to place programmes of marketing in the assistance of sector is the distributor carry out more benefit? Am I been willing to risk my money on an original concept of this type? Am I if so, until the challenge to transform the concession into advantageous company? If the answer to all these questions is yes, other factors also important must also be considered.

The site envisaged of businesses for the unit of concession is another crucial factor if the businesses are to succeed. In the best of the cases, the businesses must be established in a place where there is much human traffic, probably inside a shopping mall, close to a school, or center where all the stores are located. They must also be easily accessible to its target. In this respect, the franchisor 'will of S to provide the support in the description determining the ideal place and negotiating the lease will be a good indication of its sincerity.

Moreover, the prospect must determine the availability of the qualified people in the sector which can be considered for possible employment in its concession. The personnel of the businesses with the employees of quality who can be formed under operation and management will be a crucial factor while running the businesses without jolt.

Like directing it as a possible chief of operations of a unit of concession, the prospect must be undoubtedly of an effective training program which will arm it with knowledge proportioned by beginning the businesses and operation it without jolt later. A good training program for the employees should also be in place.

Moreover, the local legislations which are favorable to the businesses will return the occasion of concession more than one encouraging manner, supposing, C. - with-D., which the general economic conditions are good for businesses.

The best occasion of concession materializes when the possible distributor is financially ready; it carried out a complete study of its company chosen, of its viability, products, and of network of concession; it is undoubtedly of the engagement of the company to provide him the continuous support; it has a good site of businesses to the spirit; and the current economic conditions support to begin businesses.

The moment this opportunity arises, seize it!

Why some companies of concession fail

The concept of franchising is in a healthy idea of the companies. Many became rich because of him. However, not all the companies of concession become an example of success. There are several factors which can contribute to the problem.

A few units of concession, although parented by large companies, to make the mark due to the lack of the distributor to respect rigorously with the program and of the concession. After the system of the company and the provisions of the agreement of the concession is crucial with the success of any unit of concession because it is the gasoline of franchising.

Some companies dare in franchising with little experiment and the limited resources, consequently they cannot develop an effective system of concession. Although they can be sweet-talk able of the prospects by buying a concession, some, if not all, these concessions are condemned to fail because of the defective system of the company.

In certain cases, the company did not place much attention and of effort at the detail of the research of the market at the concession because its main concern sells as many concessions like possible, without studying what to be the ideal number of units in a given success of sector if ensure.

The market is affected per many external factors which are beyond the order of the companies. Those include the condition of the nation 'saving in S, the demonstration of the war or local social agitation, market demand or variation in the preferences, the manifestation of the disease which affects the raw materials provisioning, of the natural disasters, or something which would cause the reduction sudden and significant goods of provisioning or the market demand, or both. Unfortunately, the companies cannot make much about these conditions. The key with survival adapts to the current conditions and can take the blow, until the conditions are better. Sad to say, not many companies can make both that they succumb thus then to the pressure.

Other concessions ceased operations after a certain hour because they did not obtain a firm agreement of central management to put in provision proportioned, essential part, and continuous support with the concession.

Some did not obtain the interlocking of their own employees to support a new sales strategy or to develop the new employee and the qualifications of management to help them to face the market requires.

The lack to handle and order the change is also another factor in the collapse of a concession. The distributor cannot have sufficient perspicacity about the personnel of the of the 'resistance of S to the change (new strategy, model of management or policies) to being able to detect it immediately and handle the situation correctly.

Moreover, the distributor can miss the knowledge required in technology, operational systems and organization which it loses credibility among its employees. In such a situation, the moral one of the personnel will be low and an high rate of turnover of the employees can be considered. This dissatisfaction will certainly reflect on their quality of initiative and work, and will be reflected in all the level with output with the unit.

The concessions also can blow missed of with report/ratio and of the control systems those proportioned in particular which were given up by the head office after the companies opened. All the companies which do not have a strict report/ratio and the control system will most probably function on vague evaluations, until it closes finally the shop.

There are many reasons behind the failure of a concession but all those can be avoided with a complete study of the company, of its existing network of concession, adapted formation, and strict conformity in extreme cases of the agreement of the concession.