Costs are lower than opening a directly managed store. No need to have a large number of store and office personnel, which reduces labor and cash management tasks. Benefit from the division of labor between headquarters and stores.
In addition to the management resources of the franchise headquarters, the franchisees also have the sole capital to invest in human resources and investments, which gives momentum to business development. As the number of franchisees increases, the headquarters' logo and trademark are more likely to be seen across the country, naturally increasing its name recognition. The franchisee can take advantage of the economies of scale of franchising.
As a rule, the receipt of franchise fees, royalties, and product sales to merchants is a cash transaction (with the possibility of au-pin accounts, short-term accounts receivable periods, etc.), which facilitates a smooth cash flow.
The more stores you have, the more you can take advantage of economies of scale to stock products, build channel leadership positions, and establish sales channels to your advantage.
Successful practices, ideas, and innovations will be generated both at headquarters and on the part of franchisees, and these can be incorporated into the franchise package to effectively improve business performance. By sharing Know-How, more efficient operations can be achieved.
2-22-7 Kita-Ueno, Taito-ku, Tokyo
Este Kita-Ueno 203
TEL 03 5830 7650
FAX 03 5830 7651
3-5-6 Shinjuku, Shinjuku-ku, Tokyo
Ｑ Plaza Shinjuku 3-chome 707
TEL 03 3356 2388
FAX 03 3356 2389