Franchise may be an ideal choice for those who want to earn extra money without making rush decision to start their own business. According to the laws and regulations in Indonesia, franchise is an agreement for people to use rights of intellectual property or people who pays a royalty or initial fee for the right to do business under franchisor’s name/brand and system.
Meanwhile, according to Indonesian Franchise Association, franchising is a system for distributing goods or services to customers under franchisor name or brand who give right to individuals or companies to carrying out their business with same name or brand, system, procedure and method in certain period of time.
Term of franchise itself comes from combination of word wara means more and laba means profit. In other words, business owner or franchisor using initial fee or royalty from franchisee to grow the business. People who buying the business (franchise) have income without building their own business from scratch.
In Indonesia, there are diverse franchises from culinary, minimarkets to laundry. If you find yourself curious to earn some money without build from scratch, here are things you need to know before starting franchise.
1. Right Choice
Choose business (franchise) based on your budget as well as interest to minimize risk of failure. Because, no matter how difficult challenges are, if you have willingness and interest, you will definitely try your hardest to get through and growing your franchise.
Do your own research to find proper franchise meets your budget and interest. Considering the name or brand of franchise and its competitors. The way you know advantages and disadvantage of franchise you are interested in, the less risk of loss you will face. Also choose business to help you growing bigger and identify your lacking like marketing or promotion.
No matter how good a franchise brand, if location you choose is not good, it will certainly impact your business on the future. Whether renting or buying a place for franchise, ensure the accessible and visible factors. Choose a crowd location but have less competitors. Also ask people who own businesses in same location for safety to ensure comfort of your customers afterwards.