In the business world, there is no definite answer about the existence of a franchise with a quick payback and a ready-made recipe for a franchise with a quick payback. The payback of the purchased franchise is influenced by many factors and criteria that can accelerate the franchise business to ‘full sail’ and provide an influx of buyers and clients. First of all, this is obtaining complete information about the franchise owner, how well the acquired brand of the franchiser is known in the region of residence or location at the address of the franchisee. The promotion of the franchiser's trademark and its popularity among the population, where the entrepreneur-franchisee, who has entered into a franchise agreement, lives, largely determines how successful the business will be at the place of sale of goods with the logo of the purchased franchise. The promotion of the brand name is influenced by such circumstances as the conformity of the consumer price, the level of income of the working population, and the sufficient density of population in the region for effective brand distribution. At the same time, the main question arises, how long will the received franchise pay off, how will sales go, taking into account the provision of extensive advertising activities, setting the final, maximum selling price with a wrap up of your margin and covering the costs of paid contributions in the form of a lump sum, royalties, advertising fees and other basic, as well as auxiliary costs.
A reliable business plan with an analysis of market relations and competent economic calculations, its practical implementation in production and trading activities, has a significant impact on the effectiveness of obtaining a quick payback of the franchise. Creating the right business plan and the ability to uncover a business project within a franchise is the main idea behind a quick payback of the franchise. When creating a business plan, it is of fundamental importance to indicate the size of the investment, what funds will have to develop mechanisms for the implementation of the franchise, it’ll be borrowed funds or own resources. Calculations should include project financial indicators for the amount of net profit, after taxes and deductions for the use of credit resources, if any, and the achievement of a break-even point in the calendar time of production or trading activities. The business plan should disclose the existence of own or leased trade payments, sales volumes and the amount of project daily and monthly cash receipts. The project plan describes the seasonality of the upcoming work, trade, and the provision of commercial and personal services, the continuity of work by the hour for one working day, and the calendar period of the production cycle per month, taking into account weekends, sanitary days, the workload of the main, service personnel and the workload of technological and production equipment. It is imperative to provide for the observance of labor protection of staff personnel and the prevention of overworking of the working day, in order to prevent the imposition of administrative fines and inspections by supervisory authorities and work inspectorates.
The effectiveness of working out a franchise with a quick payback depends on the accumulated practical experience of the entrepreneur-franchisee who paid for the franchise, his ability, and understanding of competing in the market of consumers and buyers of goods and services. If a beginner entrepreneur starts his business with an acquired franchise and start-up capital, then the commercial risk of not getting a quick payback is very high. An entrepreneur with experience, he is much better versed in difficult market relations, has the skill of interacting with his commercial rivals, the ability to timely protect himself from the competition and calculate in advance options for possible losses and losses in business. Accordingly, a merchant with experience is more likely to achieve a quick payback on the franchise. Marketing research, prior analysis of the market, service market, and consumer demand of citizens, before paying the franchise, make it possible to quickly put on the ‘rails' and recoup the franchise. The combination of these factors as a whole contributes to the quick acquisition of the purchased franchise, to establish a business process for the successful implementation of the set goals to achieve maximum profit in the franchise business. The main thing is not to stop at the difficulties that have arisen and the ‘barriers’ that have arisen, to continue the continuous process of education and training, to master new horizons and comprehension of buying a franchise, to move forward, and then a quick payback will come by itself.