Coffee News South Africa

There is a typical sequence of events experienced by new licensees, from their introduction to a franchising / licensing system until the business is well established. Laid out below is an illustration of this sequence to help you identify where you are at and what to expect.

LEE

Initial excitement accompanied by nervousness, anticipation and hope of having a great lifestyle and / or making heaps of money. A solid foundation needs to be laid at this stage to ensure future growth.

FEE

Growing awareness and sensitivity to profitability issues,when writing out regular licensee fee cheques. Level of satisfaction starts to drop of and apprehension of business potential creeps in. Open communication between licensee and support net work is needed.

ME

Success is attributed to licensee hard work and initiative. If not going well the licensor and the business system is often blamed and criticised. Clarification of activity and obligations from both parties is often required here.

FREE

As confidence grows in the business, independence starts to assert itself. The genuine value of the system is often questioned here e.g,value of system,branding and back up services etc. and deviation from proven systems becomes tempting.

SEE

Importance of system and branding value is acknowledged. Realisation of the competitive edge gained by not doing “own thing.” More open minded,inquisitive and empathetic.

W E

The real power of licensing kicks in here. Realisation that a business relationship must be worked at. Licensees make ideas and assistance freely available to other licensees.

“Profitable Partnerships” is a book by Greg Nathan which details these aspects in great detail.

For more information and a slightly different South African flavour have a look at here.