Netherlands: Franchising offers opportunities to greenhouse sector
"Franchising is a form of cooperation that has proven its worth in many other sectors," argues Hollaar. The franchise formula, based on specific agreements and a uniform appearance in the market, offers plenty of opportunities for the greenhouse sector. To give some idea of what franchising can mean for the industry, Flynth created 'Joy for Life’: a fictional but realistic franchise for greenhouses, complete with corporate film. "With this concept we want to inform entrepreneurs in horticulture about the possibilities," says Frank. "Based on the reaction of growers, Flynth now works with a number of partners to set up a franchise model that is readily applicable in this sector."
Hollaar: "Franchising is an efficient way of doing business. You can save costs by fashioning a mutual personnel policy, including education and training, and by conjointly investing in starting material, energy, raw materials, ICT, marketing and communication. A proven franchise often opens doors that would otherwise remain closed. For example, franchises maintain agreements with other parties, such as banks, making loans all the more easy to acquire. It facilitates not only the financial handling of business transfers, but also the search for a successor. The company represents a 'known' brand and is less dependent on the good name of a specific owner."
So can this work in the horticultural community? Yes, says Frank Hollaar. "Cooperation between growers often starts as a friendship, and typically exists of a rather casual exchange of knowledge and experience. Producers’ organizations are a good step towards a more formal collaboration. Yet, participation here still tends to be non-committal, too open. In franchising, the cooperation is formalized in a contract. You can’t just enter or exit at will. This allows for more committed long-term vision and strategy development.”
“A prerequisite for success is that everyone contributes openly and honestly,” says Hollaar. “All financial and operational information is to be shared to keep the franchise viable. The strict formula, of course, means that the entrepreneur relinquishes some of his autonomy. But it also provides him with a much stronger marketing position, a regular distribution and more continuity. Moreover, a franchise largely relieves him of complexities in the field of ICT, marketing and human resources. This allows the grower to focus on the customer, the product and the sales.”
Source: Flynth Magazine
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