Franchising entails one party allowing another to use its name, logo and system of business to generate sales and profits. One of the earliest Franchisers was the Singer Sewing Machine Company, which set up dealerships to sell and repair its machine throughout the US. Later, industry giants Coca Cola, Ford and Fast Food King McDonalds joined in.
Many company turn to the franchising system because they realize the potential for rapid expansion with minimal capital. They also are able to enlist topnotch partners if the company is willing to share the profits.
The company that sells licenses to operate its system is called the franchiser, while the companies or individuals who open the units with the help of the franchiser are called franchisees.
How it works.
The franchiser gives the franchisee the capacity and know-how so the latter can sell or give out services of the franchiser using its logos and publicity methods.
The concept works on a two ways benefits scheme. Take an example BiggMall.co has taken the lead in introducing the concept of e-franchising to the Malaysian population via its Internet based company BiggMall.co, which is in the process of setting up a network of cyber retail e-franchisees all over the country.
To accomplish this, the company needs substantial manpower. This is where people like Jonathan Lee joins in the BiggMall system. Jonathan, who is educated but unemployed, say, 'In spite of my qualification, I have not able to get a suitable job. So, as soon as I heard of this e-franchise concept, I grabbed at it.' Not only does a BiggMall.co get a person to market its products and services, but the e-franchisee also benefits, as he is able to run an independent business.
The e-Franchisee benefits from the success of the franchisor and is privileged. The e-franchisee agrees to respect the commercial strategy of the franchiser, and to take part in the programs, and promotion that the e-franchisor wants to carry out.
Whether it's communication, shopping, banking or doing business, e-commerce looks all set to change our life completely. BiggMall.co plan to take the benefit of this 'e' revolution to the common people.
Cyber outlets of BiggMall.co will provide all kinds of e-commerce facilities. The goods available will include branded as well as home-made products. All transactions will be done through a secure payment gateway and delivery mechanism. Additional services include classified and information on jobs, real estate, yellow pages, matrimonial, online education, computer training etc. Common Internet-based services like e-mail; video mail, voice mail and net browsing facilities will also be available. BiggMall.co aims to include around 5,000 franchisees from over 30 cities.
Anybody can be an e-franchisee irrespective of your existing work profile or status in society you can be housewife, shop owner, unemployed youth or a retired serviceman. Space is not as big an issue as with regular brick and motor businesses. You need just 50 square feet of space to set up your business. Business e-shop does not need to be in the prime business district or have adequate frontage.
You have an idea. But you just can't get it on-line and make it work. You would need fully managed hosting, technical support, website design, content writing, social networking, promotional campaigns, and sales administration so that you could concentrate your efforts on the product or service management itself. And that just means you would need a many thousands of dollars to get started and ongoing operating capital - or - you need a partner. Oohss.com is ready to build your idea ... it's ready.