The Importance of Goodwill in Franchising
Dr. Maurice Roussety the role of goodwill in franchises by Maurice Antoine is considered of utmost importance as the franchises are highly benefitted due to the good will of the parent company. The primary advantage of a franchise over a start-up is the presence of goodwill of the parent company. Goodwill in the franchising industry can be defined as the reputation or the good name that a parent company possesses. The franchises benefits as it can use the goodwill of its parent company when it puts its first step into the business world. It is also an added incentive as the customer is already aware of the services provided or the goods available.
Often, a start-up company struggles to attract or retain customers as it has to make a name for itself in the market. For the franchises, it is a piece of cake as the parent company’s good will helps the franchise in attracting and retaining customers. The franchises get a ready made market and often have customers waiting for them. In today’s highly competitive global market, every customer is entitled to a lot of variations in every field. To make the customer ignore all the other options and getting him to choose your company, is the place where the goodwill of the parent company comes in to use, in case of franchises.
Dr Maurice Roussety :- Fall 7 times, rise 8 times is Dr. Roussety’s advice for budding entrepreneurs. The world of business is not very easy. Obstacles and limitations will be the constant companions, yet one should have the courage to accept failures and rise from their ashes just like a phoenix. Failures are bound to happen in every field of life but giving up is never an option. Dr. Roussety gives the inspirational message to learn from every setback and emerge as a winner. In the highly competitive market of the uranium era, the small scale companies can face many obstacles as they lack the resources, infrastructure and manpower to compete with the large scale companies.
Antoine Roussety feels that franchising offers minimum risks for a would-be business person as a franchise is ushered by the parent company. Like an umbrella, the parent company protects a franchise from all harm in the business world. The franchise finds itself in a relatively better position compared to the start-ups because of the advantages provided by the parent company. The choice made by the customer is often based on the goodwill of the parent company. Dr.Roussety affirms that franchising is the next big thing in the global market.