You can start your own business from scratch or choose from thousands of franchises and business opportunities, in practically any field you want. In fact, there are so many different opportunities and alternatives available that it’s sometimes difficult to figure out which is the best path to follow. Once you decide you’d like assistance in starting, you still need to understand the differences between franchises and business opportunities and how to choose which is right for you. Franchises and biz ops are fairly similar, but they do have a few distinct differences, in four key areas:
1. Common Brand and Operating System
One of the tenets of a successful franchise system is that all units operate under a common brand and operating system. This is how a consumer knows a Big Mac will be the same in Johannesburg or Cape Town. A franchise system makes a concerted effort to ensure that every operator is doing things the same and every unit is supporting and reinforcing the brand.
In a biz op, there’s typically no requirement to operate under a common brand, though some biz ops do let you use their brand if they so choose. In addition, since the focus of a biz op is on setting you up for operation, very little consideration may be given to imposing a common operating system after the business opens. You normally get extensive suggestions about the most effective way to run your business after opening, but they are suggestions rather than rules.
2. Ongoing Support
A franchise typically has an ongoing commitment to support you over your entire tenure in the business. These support programmes usually involve structured periodic contacts with dedicated support personnel for marketing, staff training, technology and virtually any other aspect of ongoing operations.
Though a biz op may also offer you ongoing support, the process is usually very informal and not based on any contractual commitment. Usually it is demand-driven, as the biz op owner responds to requests for assistance. They typically don’t have dedicated staff for ongoing support needs and won’t conduct such activities on a proactive or periodic basis.
3. Ongoing Fees
As a franchisee, you typically have a contractual commitment to pay the franchisor ongoing fees (royalties) in exchange for the continuing right to use the brand and operating system. These royalties also help the franchisor to pay for the dedicated staff and programmes they use to provide ongoing support to you. Royalties can be a fixed periodic amount or may be expressed as a percentage of your sales.
A biz op usually doesn’t have any such ongoing payment commitment. In fact, the presence of an ongoing payment obligation is one of the legal tests used to determine if an opportunity is a franchise versus a biz op.
4. Legal Disclosures
The final key difference between these two types of opportunities is related to the legal restrictions associated with the sale of the business to you. These typically involve complying with the laws and regulations in terms of required disclosures made to you during your investigation phase of the process.
In a franchise, these requirements are very stringent and centre around a document called the disclosure document. This document contains a wealth of information about the company and the opportunity being offered, including the history of the operation and key employees, any litigation or bankruptcies, all fees and costs, all rules and restrictions related to the business operation and the audited financial statements of the franchise company.
A business opportunity is not required to prepare and deliver any document like the disclosure document, though it may have to meet state requirements related to disclosure. In any case, you’ll typically receive far more legal disclosure information from a franchise than a biz op. This doesn’t mean one is better than the other, it just means you’re probably going to have to do more of the work yourself to make sure you have the information you need from a biz op than you will from a franchise.
You can safely assume that your initial and ongoing fees associated with a franchise will be greater than for a biz op. If you choose a good franchise, the tradeoff is that your risk of failure should be lower and the profit you make in the long term should be higher. If you don’t believe that to be true, there’s no reason to pay the higher fees associated with a franchise.
Weighing up the Options
A biz op also allows you to change the business into whatever you want it to become – rather than being restricted to a common brand and operating system. If you are a true entrepreneurial type, you might find that a biz op is more attractive to you because of the flexibility you’ll have in the beginning and as you operate the business over the years.
There is no right answer in terms of which strategy is better – it completely depends on the business model and your philosophy about what you want to accomplish. A careful and thoughtful analysis of your personal goals for establishing a business should help steer you in the direction of the type of opportunity that is best for you.
With Hundreds Of Franchise Options Out There, Choose The One You Can Trust
If you’re looking to invest in a business venture that offers you years of experience in the industry, the trust and loyalty of its customers, and franchise support from an expert team – then Hi-Q is the one for you.
What you’ll become a part of
Since opening their doors in 1999, Hi-Q has gone from strength to strength, growing a humble three store enterprise into an extensive 130-store franchise network with a unique multi-product and multi-services automotive offering.
Hi-Q’s approach to business is centred around being ‘the one you can trust’ to their customers, their suppliers and their franchisees.
“That has always been the key driver in everything we do,” says Sean Harrison, Hi-Q’s Managing Director. “For example, when it comes to our customers, they need to know they can rely on us to put their safety first.
That we’ll always strive to offer them expert, friendly service and top of the range products, while also keeping up-to-date with the latest technologies and advancements in our field.”
An acclaimed and awarded brand
Hi-Q has again and again proven themselves to be a leader in the industry.
They’ve been voted South Africa’s No.1 tyre retailer for eight consecutive years (2010 – 2017) by consumers in the Ask Africa Icon Brands Survey, the biggest of its kind in Africa – a clear indication that they are respected and trusted by their customers.
Hi-Q Franchisees all have the support of an expert and knowledgeable team with years of experience in the industry, who are available to guide them on their business venture. This includes areas of business such as marketing/promotional, commercial, organisational structure, tools and equipment, sales and more.
Franchisees also have access to various skills training opportunities for members of their team.
Hi-Q is invested in providing their network with the tools needed to thrive and grow in an ever-challenging market.
Relationship with Goodyear
Hi-Q has the support and backing of international tyre of multinational premium tyre manufacturer, Goodyear, and its full value proposition. This means access to incredible promotional and marketing opportunities in partnership with the brand.
Hi-Q has embarked on an extensive expansion plan and have identified areas of opportunity to extend their Franchise footprint growth countrywide.
You’ll find more information on our website www.hiq.co.za We’d like to invite those who are interested to become part of our team to contact 011 663 2431 or email@example.com
The Digital Headaches Of A Franchise Marketing Team
Here are my top 5 tools that can help control and regulate franchisees marketing with minimum friction.
Franchise marketing teams already know that managing campaigns for a business with multiple locations and/or stores is a time-consuming job.
When it comes to online marketing, many franchisees are frustrated with the mother brands’ national campaign strategy, as it may not suit their immediate needs. This often means they embark down the dangerous route of “rogue” or unapproved campaigns.
This is a huge risk for any brand as there is limited to no control over the message and quality of creative, often resulting in brand CI and best practices not being followed.
Rogue advertising can be totally avoided by a franchises’ marketing team by employing tools that allow them to set up a managed process where franchisees can advertise through. With a managed approval process (preferably automated) it is easier to manage “rouge” content.
Here are my top 5 tools that can help control and regulate franchisees marketing with minimum friction.
1. Create a consistent Facebook content experience whilst still allowing your franchisees to post to their own page
Facebook location pages makes it possible to, as an alternative, allow every store to open a Facebook page, each with different versions of your logo as their profile picture, as well as incomplete profile data or even old or past promotions as their cover image. You as a brand manager can set up each store as a location page on the brand’s main FB page.
The pages can all be linked to the main page and if you change the profile image or cover art, it will automatically update all the other pages. There are also a number of other marketing advantages to this, but most importantly for me was the ability to manage them all from a single interface and clean up all the old and abandoned pages that just confused customers.
2. Manage social media content
Gain is extremely simple to use and connected to all the popular social media platforms such as Facebook, Twitter, LinkedIn etc. As a user, you can create posts or ads and schedule them all from the same window. Once said posts are scheduled, the marketing team can preview the content and approve it for publication or request changes all within a matter of seconds. Best of all, nothing will get posted without your approval.
3. Free professional looking content in a template
Pablo is an old favourite of mine! It supplies predefined size templates where a user can use free professional stock photos and quickly overlay text. The feature I love most on this tool is the “insert logo” feature, which with the click of a button can overlay a banner or brand element that creates consistent content experiences. Once done, you can export the image and post it to gain for approval. Simple right!
4. Create email alerts for when your brand is found online
Talk Walker alerts is a nifty tool and acts like your personal internet detective who constantly crawls the internet for keywords that you define. I like to use my clients’ brand names and sometimes even my competitors just to keep tabs on their activity. Once set up, you receive daily emails with links to the content in question.
5. Pre-approved marketing creatives and targeting with machine learning optimisation
Lead Gener8or tool can define a bespoke target audience per store and lock advertising geographical areas to prevent any cannibalisation. Once completed, franchisees can execute pre-approved marketing campaigns as and when they wish on any of the integrated channels (SMS, Email, Facebook, Google and Youtube), without any further involvement required from the marketing team.
Powered by big-data machine learning, campaigns are automatically optimised while in flight. Marketing teams can monitor all campaigns in real time. This tool really is a game changer for franchise marketing teams and brand managers.
With these tools correctly implemented into your business, the digital headache of your franchise’s marketing team can subside and focus on what you do best, delivering results!
Choose A Job You Love, And You Will Never Have To Work A Day In Your Life
Join Col’Cacchio’s 26-year-long love story.
- Joining fee: R125 000
- Monthly management fee: 6% of turnover
- Monthly marketing fee: 2% of turnover
- Total investment: approx. R2.5m to R4.2m (turnkey) Size: 140m2 to 350m2
- Unencumbered cash (before loan): 50% of total investment
(Above figures exclude VAT)
“Owning your own restaurant is like owning your own future.” – Dominic Dempers, Franchisee Durbanville, Belvedere & Meadowridge Cape Town
We’re looking for passionate franchisees who will love our brand as much as we do.
Why you should join this delicious success story
- Assistance with site selection & lease negotiation
- Store design & build
- Full training provided for management and staff
- Marketing & operational support
- Product innovation & menu development
- Efficiency in all systems
- Healthy margins.
“Our journey started with a single restaurant on the foreshore with the aim to serve the very best pizza around” – Greg Mommsen, Business Development Director
“Watching this brand grow and empowering people has been immensely rewarding. We have staff that have been with us for over 20 years. It’s like a family, we work hard, we laugh, we cry, we celebrate and of course, we eat a lot of pizza.” – Michael Terespolsky, Founder and Managing Director
“Becoming a franchisee is an amazing opportunity to join the family and become part of the Col’Cacchio success story. We’re 100% behind out franchises at every step, making sure that we all continue to learn and flourish” – Greg Mommsen, Business Development Director
“It has been filled with challenges along the way, but all the rewards have made every moment worth it.” – Michael Terespolsky, Founder and Managing Director
Visit www.colcacchio.co.za or call Tarryn Godley on 084 800 7264 and let’s get this adventure going.