Does Franchising lend its opportunities to Family Businesses?
Franchising as a concept lends itself well to being a ‘family affair’ and should appeal to families wanting to go into business together. However, all family members must share the same goals and objectives, and have a high level of competency in disciplines such as business management, financial control, customer service, sales, marketing, etc. for a family-run franchise to be a success.
Family Franchising Opportunities
The Business Structure
- The business structure of franchising opportunities can be very beneficial to families in this regard, as it already has the foundation of an established business and branding in place. Families can swiftly build up a client base and get the business up-and-running.
- Having family members work together in the same franchise business ensures that they have a stake in the profit or losses made, guaranteeing that they will be committed to the business’s success. The team effort with regard to the various day-to-day tasks such as administration, sales and organisational tasks, will also lend itself to the family business becoming more productive, sooner.
Family Strengths, Family Weaknesses
- When it comes to deciding on and evaluating the strengths and weaknesses of each person, family members generally know each other well and know how to capitalise on each others’ strengths. When the workload is evenly balanced among family members in this way, burnout is less likely to occur, because there is a firm support structure in place.
- Younger members of the family can also be introduced to the franchise to ensure succession in the business when the older members retire. However, in this regard, new members will have to be approved by the franchisor.
The Ideal family franchises
Certain franchise opportunities lend themselves especially well to being run by families. Here are a few examples:
- Food franchises
The generally long hours required in the food service business can be very challenging, but when shared among family members, they can become less daunting. Husband-and-wife teams work especially well when it comes to attending to the opening and closing duties of a food service business. Children can also be called on to stand in when needed, including covering for employees who call in sick or do not arrive for work.
- Retail franchises
A busy retail franchise is an ideal family business. In general, the business hours are usually shorter than in a food service outlet, and various duties such as inventory control, bookkeeping, marketing and promotion can easily be divided among various family members.
During peak seasons such as holiday periods, for example Easter and the December festive season, which accounts for as much as 20% to 40% of a business’s annual sales, it can be extremely busy and stressful. However, having the built-in support of family members can help alleviate pressure, allowing the business to run smoothly.
- Automotive franchises
In today’s market, automotive franchise owners come from different backgrounds, because the important skills needed for successful operations and customer service are especially relevant in this sector of franchising.
Entire families can become involved in just about any automotive franchise on offer in the South African market. Different members can manage various areas including:
- Car maintenance
- Glass repair and fitment
- Car rental
- Customer service
Automotive franchises often tend to be fast-paced businesses and therefore energetic owners and family members can really thrive in this sector.
So, if you are looking for a business in which to get your family involved – franchising is definitely a good option to look into.