Franchising as an expansion model for business, if done right, is the perfect recipe for success. Operating under various formats and models, franchising is a world of its own. Their exists some superb features of a COFO BUSINESS Model, that provides its sense of difference. Some of the features are here:
Company owned units: In a COFO business model, the franchisor or representatives directly operate and establish franchise units. These company owned units act as examples that exhibit the ideal operations, standards, and success of the concept of franchises.
Franchisor’s support:
The franchisor gives off support, training and ongoing assistance to both the company owned units and franchisee owned units. The aim is to maintain the consistently maintain brand quality, customer experience and standards and customer experience across all geographical locations.
Consistency and control:
The franchisor maintains control and dominance over the company owned franchise units to ensure that the operations are carried out in accordance with the standard of the brand and terms and conditions. Consistency in quality, services and consumer experience is the top most priority across both company owned and franchisee owned units.
Brand Recognition:
Franchisees get benefit from the well established brand recognition and reputation cultivated by the company owned franchise units. They increase the success of the company owned franchise units, which can increase the credibility of the franchise concept.
Growth and scalability:
The COFO business model allows a scalable growth by uniting the control over company owned and having direct dominance. Franchisees contribute to the great growth of the company by operating in the self-unit.
Balancing Entrepreneurship and Control:
The COFO business model maintains a balance between the controls owned units and the entrepreneurial drive for franchisees. This allows for brand steadiness while tapping ino the investment of local expertise and investment of franchisees.
Advantages of a COFO model:
A harmonious relationship is fostered with both the franchisee and franchisor in a COFO business model that provides both the parties with greater benefits. Listed below are some of the advantages and which can be enjoyed by both parties.
Below are the pointers which we can follow:
Reduced Business Risks
Access to Innovation
Local Entrepreneurship
Benefits for Franchisees
Profit Potential
Benefits of Franchisor
Direct Revenue and Profits
Strategic Expansion
Cofo allows shared responsibilities, management, reducing operational costs for the company but retaining ownership is very crucial.
Thus by following all this steps we can look forward towards building a superb COFO model.