Friday, November 30, 2007

Franchise Return On Investment | ROI

Entrepreneurs who want to start their own franchise business these days has a lot to choose from these days. Some franchise companies even proudly declare what ROI to expect when you franchise with them to make it attractive for people who are still looking for a company to franchise. But should be take their ROI claim at face value? Due diligence must be conducted before sinking your hard earned money in any business venture. If you are really decided on getting a franchise with a particular company, First scrutinize their financial records to verify that their ROI claim is indeed true. That way you will can also tell if their operation is legit. With all these fly by night companies claiming to be franchise businesses but are actually MLM in disguise, you can't be too careful these days.

Remember there are lots of factors that contribute to the earnings of a franchise. First and foremost is the location, location location. You can't expect the earnings of a franchise business establishment that is located inside a mall or LRT/MRT stations to be the same compared to the same franchise establishment that is located inside your subdivision or some street corner that does not have lots of human traffic. Also, the product or service being offered must be up to the consumers standards. It will be hard to believe the ROI claim of a company if what they are offering is sub standard. It would be wise for the potential franchisee to just ignore the ROI claim and instead look for a great place to setup their franchise business then look for a reputable franchise company that has a pr oven track record to do business with.

1 comment:

Eero said...


Mind Bullet Inc., a direct to consumer communications PR firm in the Philippines, introduces its “one day strategy session” aimed at helping predominantly start up enterprises and companies position themselves properly in the market.
At the launching of its website,, Mind Bullet leverages market positioning as it applies to new business. President and CEO Eero Brillantes elaborates. ‘What we have done is to concentrate on key market positioning subject areas appropriate for start up businesses. With some preparatory time, a session would last a day with a measurable market positioning program as output. After the session, we present our strategic recommendations. After that, it all nurturing time spread over the period a program is being implemented. ”
Brillantes emphasizes the need for proper positioning as necessary to roll out new business.
“Now more than ever, market positioning is a major activity for any new business to succeed or even become dominant in a market. As a process, market positioning encompasses certain factors essential to roll out strategies and launches. Identifying real value, actually owning key words and phrases in the consumers mind, and establishing consumer relationships based on human interaction is what market positioning is all about”.
Brillantes mentions that a lot of new businesses spend so much resources on capital outlay and tactical marketing campaigns only to be frustrated.
“How many times have we seen owners of businesses spend on equipment, expertise, and marketing gimmicks which do not give real value. It just so happens others have spent on these also. The same equipment is bought. The same media-marketing mix are employed. Similar corporate philosophies and business models are cascaded throughout the organization. But if you look closely, a lot of spending go to expenditures which do not anymore provide the competitive edge needed to succeed. Many factors of competition are already at parity. Yet this type of mistake is common. “
For his part, Nestor Mijares, Accounts Director at Mind Bullet says that nothing beats owning real estate in the mind of consumers.

“With so much information out there, and a galaxy of options for consumers, how do products and services stand out if these are new? Owning a word or phrase and relating this with what is offered is the most powerful outcome of any in market positioning strategy. Done properly, positioning makes a product, service, or individual stand out in the crowded market place and even at times dominate . Pushing the envelope further, proper positioning opens up new markets.”