Your Business magazine and its digital issue at www.bizmag.co.za – the go-to site for all things franchising – asked David Botha, Marketing & Sales Director of Retsol which owns the Corner Bakery brand for his top tips when looking to buy a franchise.
- Do your market research to understand the retail landscape in which the franchise you are interested in operates. This includes understanding the core customer segments that the brand caters for as well as who the competitors are.
- Understand where the franchise in question wins over its competitors. Does it have enough differentials compared to the other brands that it competes against?
- Ask your peers (and people on the street) if they have heard of the company and what their perceptions are of the brand. What you are looking for here is a gauge on brand awareness; product quality; customer service and overall appeal. Also check out the brand’s social media pages to see what customers say about the brand.
- Ask the franchisor for details on their systems, including product sourcing, distribution, pricing, product development cycles and in-field support teams.
- Understand the business model (ask for case studies of existing stores); the investment cost; the financial model (what is the payback period, break even sales and staffing requirements to make the model work).
- Understand the marketing strategy and level of support that each individual store receives for marketing locally.
- Choose the right site!
- And lastly – choose a brand that you are personally passionate about and be willing to be actively involved in making the business a success. Visit www.cornerbakery.co.za for franchise opportunities