Simply put, franchising is a way for a business to expand beyond its original owners. The most common form of franchising is a business format franchise, where the franchisor contributes certain elements of the business and the franchisee contributes certain elements. The power of franchising is realized through the combination of the contributions from the two participants. Franchisees pay initial franchise fees and then ongoing royalties for access to the format the franchisor has developed and for ongoing enhancements to the system.
The franchisor contribution will include the brand/trademark for the concept, the business system (commonly called the operating system), and initial and ongoing support as the franchisee builds his or her business.
The franchisee contribution involves the management skills to run the business day-to-day using the franchisor-provided brand and system, and capital to fund the opening and continued operations of the business. In addition, the franchisee brings a level of desire and interest in having the business succeed that is essential to franchising – and is something the franchisor can't replicate on its own.
The best thing about franchising as a product or service distribution mechanism is that it is one of those synergistic business relationships in which all of the parties have to benefit for any of them to achieve long term success. In most cases for the franchisee to succeed, the franchisor has to do good job of providing service and equally for the franchisor to succeed, the franchisee must profit. There is no such thing as a successful franchisor that does not have successful franchisees.
Self Owned Business V/S Franchisee Business
|Start ups||Franchised units|
|Brand||Yet to be Established||Well Established|
|Risk||Very High||Comparatively Low|
|Time Frame to Establish||High||Already Establish|
|Technical Know How||Self Development||Provided by Franchisor|
|Training & Support||Not Avilable||Provided by Franchisor|
|Business Model||Risky||Tried and Tested|
|Research Development||Very Costly||Available at resonable cost|
Speed Car Wash "An Innovative Business Idea"
Change is the law.. Early man invented “wheel”, Then Cart was converted into cycle and then car came into existence.
Man moved to luxury and opulence!!
In last fifteen years, the no. of cars has increased many fold. In today’s context most cars are driven by the owners themselves and would any day prefer to have a quick car wash, rather than leaving the car the whole day at service station.
The Car Wash industry has grown from as simple as hand wash to sophisticated high impact pressure jet wash technology. Owning and running a car wash these days, is not mere business but, its one of the most lucrative and profitable business.
Although it is an unorganized sector till date, a new and organized way of car washing can create the difference. At Speed Car Wash, plethora of research on the car care and maintenance was done and this entire concept was summed up. The aim is to deliver best of services and bring in new concept to the car market. Like other countries like US, Italy, Germany and UK where professional car wash has a very significant role to play, India is also not far flung in the race.