What would be the most profitable franchises cooperation packages this coming year?
How much capital is needed to partner to become franchisee?
Franchise Business is one of several styles of business cooperation that is ever more popular in world. Currently, you can find a huge selection of entrepreneurs that has inherited their businesses, starting from small-scale franchises to big-scale franchises that set capital of numerous millions of rupiah. In addition, we can easily also begin to see the progression of franchise businesses in world from various types of franchised businesses.
Currently not merely the foodstuff and beverage customers are franchised, but also has penetrated into various business sectors, for example services, technology, plantations, health, automotive, etc. Then, is actually a franchise business, the place to start building the partnership business, and what include the prospective franchise packages this season? Let’s see the following description!
What is Franchise?
Franchising emanates from the word “wara” which means more, and “profit” means profit. So, if abbreviated madness is a bit more profit. In foreign terms, a franchise is termed a franchise (French) which means the proper or freedom, namely the rights to sell a product or service. We can notice the official idea of the franchise in the Minister of Trade Regulation No. 12/2006 which reads:
”Franchise is a contract between the Franchiser as well as the Franchisee where the Franchisee is given the right to chance a business by making use of or using intellectual property rights or discoveries or characteristics of the business belonging to the Franchiser with a reward in line with the requirements sets from the Franchiser which has an amount of obligations to supply ongoing operational consulting support from the Franchiser to the Franchisee.
Meanwhile, according to the Indonesian Franchise Association, madness with the franchise are:
A system for distributing goods or services towards the end customer, in which the brand owner (franchiser) gives the individual or company the correct to do business with the emblem, name, system, procedures and methods that have been set before inside a certain period covering a particular area.
So, whenever we conclude how the franchise is really a business collaboration between two parties, namely the property owner / franchiser using the recipient / franchise partner (franchisee), where the recipient / franchise partner is able to use various business facilities (brand, recipe, intellectual property, products, etc.) To get business benefits relative to agreements decided.
In addition to obtaining royalty fees from partners, the franchiser may also benefit because the business network becomes wider. Meanwhile, franchise partners (franchisees) will feel benefit because they can create a business more practically and will market products or brands which are popular in the community.
Advantages and Disadvantages of Franchise Business, The partnership model in the form of a franchise business possesses his own good and bad points. If you desire to pursue a franchise business, which is, like a recipient / franchise partner or termed a franchisee, you will find some negative and positive items that you will get, including:
Benefits of pursuing a franchise business
1. The risk of failure is smaller
When we decide to go in the franchise business, of course we’ll select a franchise package which includes proven its advantages and stability. According to the outcomes of research conducted by Michael M. Coltman, it is known that building an unbiased (independent) business beginning from zero carries a upper chances of ending in failure (70% -80%), whilst the risk of franchisees’ business failure are only 20 % -30%.
2. Get business assistance and guidance
The next advantage gone through by franchise partners may be the existence of various business some help from franchise owners, as an example as equipment, unprocessed trash, consulting, training and in addition business promotion. This is handy, specifically for beginners that are still laymen in the industry world.
A good franchiser will always be attentive to accompany the business progression of its partners, for the reason that more complex the partners’ business, they will get multiple profits.
3. Market popular brands
We certainly do not need to bother anymore to promote the manufacturer or make of business goods that we sell, because it has been done through the franchiser, specifically if the franchise package we buy has been very well liked locally. Many national and international franchises are very well-known to the public. The brand’s popularity makes franchise partners easier to Generate consumers or “built-in customers.
Weakness within the franchise business
1. Supported inside the franchise owner’s concept
We must follow the organization concept set through the franchiser. This will make the creativity and business instinct that we have become rather limited. In fact, not infrequently some franchisers give strict limits for their partners to maintain the brand image that’s franchised.
2. Costs are relatively more costly
Buying or joining a franchise partnership business seems to be more pricier than starting a business independently (alone). There are several additional costs which could, should be borne by the partners, including franchise fees, royalty fees each year, or additionally a percentage deposit of profits towards the franchisee.
3. Joint reputation bets
As mentioned above, among the benefits we obtain when joining a franchise partnership is the manufacturer of business products which we market are very-seen to consumers, so we need not bother building that brand image. But conversely, the use with the brand is used from the franchiser and other partners, to ensure automobile error is created by the franchiser or other franchisee, then we will even bear the outcomes, no less than be tarnished from the business or product we sell to consumers.
A Line of Prospective Franchise Packages This Year
Franchise concept business has become a small business trend which is cherished by young entrepreneurs.
According to them, from the franchise business, they are certain to get some profitable things, including:
1) management transfers;
2) market certainty;
3) promotional assistance;
4) supply of recyclables;
5) quality control;
6) introduction and knowledge of business locations;
7) progression of human resource capabilities, and more importantly
8) risk inside the franchise customers are very small.
Well, once you read about the comprehension of the franchise as well as understand the negatives and positive side in the franchise business, obviously you can be already conclude concerning the “yes” or “no” match with this enterprize model with your entrepreneurial mission vision.
If you decide to try to enter the franchise business as a partner (the franchisee), then you can definitely consider the following series of franchise packages. This is really a set of potential franchise packages this seasons. These details are taken from waralabaku.com which is one of the local franchise directories and most profitable franchises that is predicted will continue to grow from year to year as from 2017, 2018, and then 2019, and advance in various countries such as Canada, India, Canada, NFL, UK, South Africa, and others.
1. Cheap N Clean Franchise, Autocare Center
Is a franchise package intended to provide solutions for automotive product maintenance needs. Established since 2003; the number of outlets currently is 8; the minimum capital required is RP. 120 million; franchise fee of RP. 40 million per several years; royalty fee of RP. A million. For more information look for on the site: cheapncleanautocare.com
2. Galaxy Pertamini Franchise
Is a franchise package that gives sales of innovative gasoline filling products. Founded during 2009 through the company Pelangi Seimbangan Selaras. The variety of outlets currently is 200. The minimum required capital is RP. 6.9 million. Further information: galaxypertamini.com
3. High Definition Car Care Franchises
The franchise package provided can be a vehicle maintenance with products used from your United States. Having a complete and greatest quality production for vehicle maintenance that produces HD Car Care brands get their own markets within the Autodetailing industry around the world.
The name in the company holding the license is PT Aristoli; franchise packages marketed since 2014; the amount of outlets currently is 8; the price and minimum capital needed is IDR 250 million.
4. King Auto Interior Franchise
For those who like automotive interior planning and wish to go into the business, the King Auto Interior franchise package is definitely an attractive choice. Ki
ng Auto & Home Interior Indonesia as being a Cover Seat & Interior Maker and Home Interior was inaugurated as a Franchise Company in Jakarta Conventional Center on November 6, 2006.
You are interested, a minimum of providing a basic capital of about 210 million rupiah, along with a franchise fee of 100 million rupiah for five-year. Further information on kingautointerior.com
5. Valo Franchise Water Saving Car Wash
This franchise package is a business in the field of automotive maintenance services, especially car wash with the idea of saving water. The main product used is a Valo product that is certainly safe on vehicle paint, and its particular application works on the microfiber cloth to ensure that it will not cause berets.
To join in the partnership package PT. Valo Indonesia Pratama, needs a minimum capital of 75 million rupiah, plus royalty fees of 5 million rupiah per year.
Food and Beverage Franchise
In the culinary and beverage sector, you will find many entrepreneurs who offer business cooperation while using franchise concept. Well, the subsequent are 5 popular food / beverage franchises possibly at affordable prices (affordable).
1. Pasco Franchise
Pasco is an ice blend cup beverage product brand owned by Ansena Play Indonesia. Until now the variety of outlets owned by around 183 outlets. To join in the beverage business, it takes a minimum capital of around six million rupiah, without franchise fees and royalty fees. If you want the franchise package with outlet equipment able to open, then these costs needed are about 9 million. Detailed information can be seen on passionofchocolate.com.
2. Semerbak Coffee Franchise
Another collection of low-cost franchise packages inside the packaging beverage business is Semerbak Coffee Blend that was introduced during 2009. Until now, it’s claimed to possess around 500 units of branch outlets in 80 cities across Indonesia. To join the Semerbak Coffee partnership package, you need the absolute minimum capital of 9.5 million rupiah.
There are several facilities that you’re going to get with one of these costs, including: one unit counter with complete equipment, a package of coffee unprocessed trash including a cup, operational procedure guidelines, media promotions (banner ads), and also employee uniforms.
3. Franchise Chicken Grobakan Franchise
Partnership packages you could also consider in the field of food is Grobakan Chicken Noodles. Characteristics favored from the Chicken Grobakan product include: noodles prepared by themselves, free of preservatives, chemicals and guaranteed halal; noodles are soft, smooth and not easily broken; and delicious flavors at reasonable prices.
Well, to become listed on this franchise package, the very least capital of 45 million rupiah be needed. With that amount you’ll get 5 business units. What include the facilities and equipment obtained for each business unit?
4. Martabak Mini Africa Franchise ‘waka-waka’
If you would like opening a cake or snack business, then your partnership package through the Zavindra Pijar Raya company can be an attractive business investment. There remain 600 partners that have joined the partnership package since its introduction in 2011.
The minimum capital needed is not too large, that’s around 7 million rupiah. Unique products and special taste and attractive booth concepts are some in the advantages which can be provided to consumers.
5. Arumanis Rainbow franchise
You may also get a selection of culinary franchise packages at the best prices about the Arumanis Rainbow franchise. Franchise products owned by Pelangi Seimbang Selaras company have successfully attracted over 1,000 partners in Indonesia.
Bandrol capital that really must be provided with the franchise recipient (franchisee) is often an at least 8 million rupiah which is really a micro package for 3 outlets. Arumanis Rainbow is often a brand of snack products available as cotton candy (cotton candy).
Entertainment & Hobby Franchising
There are not a lot of franchise packages available within the entertainment and hobby sectors. If you are enthusiastic regarding the entertainment business, you’ll be able to think about franchise package, including:
Mini 3D travels to school cinema (capital of RP. 35 million); Learning To screen (capital of RP. 30 million); or SCX Race Zone (capital of RP. 45 million).
Lodging & Travel Franchise Field
You who choose to travel or want to deliver lodging accommodation services, then lodging and travel franchise packages could be the solution. Some options that can be considered include: Panorama World Franchise (minimum capital of RP. 500 million); Iwata Tours & Travel Franchise (minimum capital of RP. 350 million); Simply Homy Guest House Franchise (minimum capital of IDR 150 million); or Hotel Top Voucher Franchise (minimum capital of RP. 7.5 million).
Franchise for Health and Beauty
For women that are thinking about going in to the beauty and health services business, for example spas or salons, sports place, such as the come with an adequate business picture, franchise partnership cooperation can be quite a solution. There are several businesses that have offered cooperation through the franchise enterprize model, including:
1. International Beauty & Spa
International Beauty Spa & Dr. Christine Schrammek Derma Cosmetic, aesthetic treatments, modern spas, open agency opportunities for all of Indonesia. Minimum capital of around RP. 75 million.
2. Jelita Clinic
The autopilot beauty clinic business with medical-related systems and services, the pioneer with the mobile clinics system. The minimum capital needed is RP. 10 million.
3. Royal Garden Family Spa & Reflexology
Royal Garden Family Spa & Reflexology includes a vision of providing quality spas at inexpensive price points near your home & customer care missions. Founded in 2009 while using number of partners reaching 25 branches. Minimum capital close to 220 million rupiah.
Well, in addition towards the franchise line mentioned previously, there are also franchise packages in other business fields, such as furniture franchises, construction, property, computers, technology, laundry & cleaning services, retail, among others.
Tips for Success in Choosing a Franchise Business
The word “success” in doing customers are the desire everyone, including perhaps you who wants to work in the franchise business as being a franchise partner / recipient. As mentioned above, the concept of a franchise business comes with its very own negative and positive sides.
There are several obstacles that may be faced by the franchisee in running his business. Some from the constraints and obstacles that appear really clear include:
1) higher capital surrender;
2) sometimes more costly raw material costs;
3) bad location of franchisees;
4) limited creativity; plus
5) the franchise’s bankruptcy which ultimately harmed its partners.
Well, to be successful in running the partnership business, we have to be very clever in choosing a franchise package. Some tips that you might notice, include:
1. Choose a franchise business that meets your passion (liking).
Don’t let you choose a franchise business you don’t really like, but simply follow the trend of people around because in the potential profits that your just see.
2. Look at the potential of the franchise business in the area.
Each region certainly has a different population character, different potential resources, and also different business opportunities.
Do not let you purchase or join inside franchise in the field of education services, while in your area the will of parents to advance their children’s education remains very low.
This means that currently the franchise potential is still not prospective in your town.
3. Pay attention for the distribution of franchise partners that already exists in the area.
A good franchisercan be a franchiser who pays attention towards the distribution of his partners. A good franchiser certainly doesn’t want his partners to compete face to face running a business competition.
If you plan to participate a franchise package, absorb your organization area. “Are there similar franchise partners who have recently been established?”
4. Compare prices, quality and quantity of franchises
An important point that’s also taken into consideration in selecting a franchise package will be the price comparison. The expensive price must be comparable towards the package provided. Price choices should be adjusted towards the budget we’ve got.
Look at how many parties have joined a franchise company. This can be one indicator in deciding which prospective franchise and business are stable. Franchisers that have stood for a long all time, have a quantity of partners and extensive networks, and enormous business turnover can be a positive signal coming from a potential franchise package.
Well, which is a glimpse of your review in the ins and outs of the most profitable franchises business. Whatever choice of franchise package you choose, the important thing to success is tough assist clear business planning.
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