Epidemic Trends Business Franchising Concept

The concept of business franchises of late has become a trendsetter of color in the new dynamics of the economy. At least in the last three years, interest of the Indonesian people against the emergence of franchise business opportunities are very significant. This interest in the two mirror reflected namely: the number of buyers and the number of franchise business opportunity converted become a franchise.

Franchise itself comes from the latin language francorum rex which means "free from bonds," which refers to the freedom to have the right business. The Franchising itself is one of the commitments which the parties are given the right to utilize and / or using intellectual property rights or inventions, or characteristic of the business of any party with a reward based on the requirements defined in the framework of the provision and / or sale of goods or services ( Franchising Information, Directorate General Trade, September 2005). The simple, red thread franchise sales package is a comprehensive business and ready for use that include trademarks, material and controlling management. Therefore, the parties involved in franchising divided into 2 segments namely: granting franchise (franchisor) and the recipient of the franchise (franchisee).

Franchisor, which is also referred to as the general body pewaralaba is the right business that provided to other parties or to take advantage and use the intellectual property rights or inventions, or characteristic of the business assets. Franchisee, who also called franchising, agency business, which is given the right to utilize and / or using intellectual property rights or the findings or typical business dimilki our franchise. Franchisor must have been ready with the equipment operating and business performance management is good, ensuring continuity of business and distribution of materials for the long term, and provide premium business to the smallest detail. Franchisor must also provide the advantage that calculation, the balance sheet include BEP (Break Event Point) and ROI (Return On Investment).

Franchisee only provide a place of business and a certain amount of capital depends on the type of franchise that will be purchased. Franchisee has two financial obligation to pay the franchise fee and royalty fee. Franchise fee is the amount that must be paid as rewards on the intellectual rights of our franchise, which paid for a one-time (one time fee) at the beginning of the franchise purchase. Royalty fee is the amount of money that is paid periodically, which is a percentage of sales omzet. Value franchisee fee and royalty fee is very bervariatif, depending on the type of franchise. But the franchisee will also have non-financial obligation that is essential to maintain the image product franchises.

Society has been very familiar with the brand McDonald's, Kentucky Fried Chicken, Bread Talk, Pizza Hut or Starbucks. Name-brand name Dagan is a registered trademark foreign franchises. In operation they sell master franchise. Master franchise is entitled to sell or manage their own return to the franchisee on a territory (coverage area) specific, depending on the agreement. The growth of the franchise business in Indonesia is a fast, and the role of brands such as local franchise Primagama, Alfamart, Martha Tilaar, Roti Buana, Edward Forrer, Bogasari Baking Center and various other names. Brands local government is directed to take shelter under the AFI (Franchise Association of India) which is the official association recognized by the government in the areas of franchise. The Association is a member of the IFA (International Franchise Association) is the scale of international franchise organization. AFI was established on 22 November 1991 with assistance from the ILO (International Labor Organization) and the Government of Indonesia. In June 2003, sponsored by the Department of Trade and Industry (now Ministry of Trade), held local elections franchise that is best: Rumah Wong Solo Eat (Restaurant Category), Indomaret (Retail Category), ILP (Education category).

In the field, franchise system in Indonesia to be applied at least 4 types namely: the system with the franchise business format, for profit franchises, franchises and investment cooperation franchise trademark. The implementation of this very dynamic, where its use is mainly dependent on the type of business and the area.

Criteria status can be changed into a business franchise should at least meet the special requirements of various unique, not easily imitated, have advantages compared with other similar types of business so that consumers will always look for products or services (repeated order). Have a proven track record or have a business concept that has been successful, which can be seen from the balance sheet, the company's image and products / services that are guaranteed. Frenchising also must also benefit from the standardization of operation and a clear, in the framework known as SOP (Standard Operational Procedure).

SOP can be said of the soul of the franchise life. SOP without a clear, understandable and easy to understand applied, the success of franchises will be difficult to achieve. SOP will contain the guidelines detail the operation of a business, ranging from supply of raw materials, management, training, human resources, finance, marketing and promotion, to the development of research. Every detail will be booked manually according to the segment each. The factors which the terms of a franchise such as the above mentioned general terms with franchisibility. Because of high standardization, providing benefits for the people who want to buy a franchise. Many business opportunities (Business Opportunity - BO), which claims itself as the franchise, but does not meet the requirements for the franchise is called feasible.

The risk of business failure franchises much smaller compared to other business concepts such as MLM (Multi Level Marketing), Distributor, Direct Sales Business (Direct Sales), and various other business concepts. The risk of failure of franchise is 5% - 15%, while on business in the usual number more than 65%. The businessman who has run a steady business with the benefit to convert into a business franchise. Although it claims to get additional enhance the quality of their business, that impact more than just equal in terms of image building and brand their products or services.

The cost of purchase or rental business is not automatically the responsibility of the franchisor. As an example of a bakery that is famous in the area makasar will require hundreds of millions of rupiah, even in the range of billions if the owners want to open 10 branches in various cities in Indonesia. While the funds may only need that is not large, if the business is ready franchising to different cities. In a matter of months, various outlets have been built and the image of the product known community.

It's interesting that the issue of a national franchise that is growing local franchise at this time is much higher than the growth of foreign franchises in Indonesia. This fact was due to give a variety of local Franchisor ease in terms of the purchase of their franchise. Tolerance is also given wide marketing campaign and added that continuously and up to date. The media in Indonesia also contributed in the growth of local franchises, the media business has been the franchise as a special segment of coverage, and even now there is a magazine that only the special shell franchise specialty specific.

Facilities that support the campaign is strengthened by the various national-scale exhibition event, which not only held in Jakarta, but also to various cities in the region. Tens of thousands of visitors who come represent atensi knowledge society akan franchise. This is caused by the more easily to their distribution chain and the potential for micro-economic areas that promise. Of the banking industry is also increasingly strengthening business franchise concept, with the presence credits special partnership program, for example Bank of HS 1906 which provides credit and investment credit capital franchise business franchises. Developer-developer cooperation in the field of providing a place (retail space) franchise start look at the various properties, as they are considered more profitable for the sale of business (shop, malls, trade center) when integrated with the franchise.

Cooperation is very profitable, because of the direction and goals of the business has been clear for a particular type of franchise, property prices are also cheaper than if they buy it separately. The massive synergies from the various parties, stabilize the existence of this franchise in Indonesia. The existence of the franchise for the government itself was very helpful, especially for a new job and instantly trigger the regional economy.

Before the financial crisis, the franchise in general is a foreign franchise. 1997, approximately 64% of foreign franchise businesses close due to fluctuation of the rupiah. After the financial crisis subside, begin appear various local franchises. From the period 1999 to 2000 the growth of the local franchise of 120%. Projected trends franchise business in Indonesia will remain promising for both franchisor and franchisee to uphold the commitment to continuously improve the quality of the product or service they sell. Business owners who want to franchised for public business must be really clean system before selling the business concept to the public.

Everyone who wants to dive in the area of franchise should really remember that this business is the type of long-term and sustainable. Dedication to quality quality must be really, SOP manual and have been made not only obeyed but also continuously updated and improved.

Taste to be a community that filters terandalkan to select a business is really worth as a franchise called, not only business opportunity (BO). Although very few in number and not significant, but there are some cases franchise can be a lesson to the future. The case usually comes from the inability to meet the franchisor supplies demmand goods that overloaded, so that the stock distribution was stopped. Other cases which also often happens is a lack of supervision of quality control and quality management franchisee, so that the product purchased is not the same between one place to the other places. Franchisee success is generally true is that they really put on the type of business interest purchased, so not just a mere investment, but also consider the motivation factor.

Select the type of franchise is equivalent to choose the pair lived. Relations between the franchisor and the franchise should be harmonious and eternal. If someone did not like the work especial cars, it is recommended not to buy the franchise shop. Or if someone is not happy to treat clothing, do not buy a franchise laundry. The type of franchise business in Indonesia is very diverse ranging from the bakery, café, F & B, the Internet, pharmacies, property agent, beauty shop, retail, education, hobby, jewelry, even plumbing cargo service is also available.

The large variations in this business should be easier for people to choose who really right for himself. Not a few kinds of the local franchise that has been really solid build and maintain the quality image of products so that they have started to go with the various international expo in the world and has opened branches abroad. Market prospects are still wide and waiting. We all hope that when all parties to a franchise in both franchisor and franchisee have the professionalism and high work ethics, a system that delivered real teruji, so that products and human resource quality can become a epidemic in Indonesian society.