Why Franchise Business Is Still Interested

Franchise or franchise is seen as a business with significant growth. International Franchise Attractiveness data from the University of Hampshire in the United States shows that the frachise business in Indonesia has the fifth market potential in the world from 131 countries. Indonesia is also in the top ranking regarding the attractiveness of the franchise business , so this business opportunity is quite promising.

“ Franchise talks about the development and expansion of the business range. This business can be an option for a new strategy in business growth efforts in the midst of a pandemic, ”said Eka Nilam Sari, ShopeePay’s Head of Strategic Merchant Acquisition.

Donny Pramono Ie, CEO & Founder of Sour Sally Group, agrees that franchising is a business option that has considerable opportunities. This business owner with more than 250 franchise outlets revealed that through a franchise strategy , his business can develop, even succeed in penetrating the market until it becomes a trend.

“ Franchises make it easier to expand your business and reach more consumers in a relatively short period of time. Sour Sally herself experienced tough challenges before deciding to start a franchise , “said Donny.

At least, there are three important points, according to Donny, that business activists need to know before starting the franchise .

The franchise business expands the reach of the brand to be close to customers.

At this point, innovation and adaptation of franchise products really need to be considered. An example is the McDonald’s business which has a signature menu in each of its franchise countries . Thus, the presence of the product is relevant to consumers in the expansion area. This innovation must also adjust to the current trend.

Pay attention to aspects of capital, risk, human resources, and supporting technology.

According to Donny, basically starting a franchise does not require large capital. However, it is better to minimize risk by managing capital so that it doesn’t go out too much when the new franchise starts. In addition, ensuring human resource capabilities and utilizing technology such as digital payments and supply chain management can also be a step to minimize risk.

Build a simple and consistent franchise management system .

The main problem with franchising is the difference in quality between one branch and another. The factors are many, ranging from different standards for selecting goods to different production standards. For that, this business actor must be able to maintain the consistency of their products.

From the brand owner’s point of view, they can provide strict production and material standards, while from the franchise side, they must follow these requirements.

“The current franchise trend is the adaptation of digital technology starting from payments, supply chain management , to entering online sales channels.

The marriage of this business strategy should be able to further encourage franchise business actors to continue to run and expand their business scope while adapting to the market landscape, “concluded Lala.

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