Franchise System

A franchise is a system which can be recreated to produce the exact same product or services. An example of this the “McDonalds Franchise” which when followed can produce the exact same product like a burger patty (within the accuracy of one-thousands of a gram). When someone buys a McDonalds franchise, they must comply with the franchise regulations that govern how the product is made and how the restaurant is run. If every McDonalds restaurant owner was free to do whatever they wanted then customers would never know what to expect and the products would be different in every store. But the franchise system ensures that the product is exactly the same in every restaurant worldwide. So, if a customer enters a McDonalds restaurant in Fremont, Nebraska U.S.A. then the food will be exactly the same as if he ate in a McDonalds restaurant in Moscow, Russia.

It should be noted also that if a person starts a McDonalds franchise, then he will typically have many customers on the first day of opening the restaurant because the brand has recognition and people know what to expect if they go to eat there. However, if a businessman starts his own restaurant, then it could take decades to build up a “clientele” because only a few people will show up to try it and if they like it then they can tell their friends to try it as well. This method can take a long time before such a restaurant becomes successful and many businesses have gone broke before they finally established the “clientele-base” they needed to stay operational.

Purchasing a Franchise System

Purchasing a “Franchise” is actually purchasing a “production-system” used in producing various goods or services. {The “franchisee” is defined as the person who purchased a franchise system]. But even if it cost a lot to purchase, the “franchisee” can experience immediate success and have an instant “customer-base” from this first day of operations. It may have taken years (or even decades) to develop the franchise “production system” but because it is an established system then it will work immediately from day one. The franchisee does not have to experiment with trial and error to discover what works the best and what products sell the most because all of this work has already been previously done by the franchise seller.

Seeking Korean Franchise Systems to Produce Needed Goods and Services

This is why we are seeking to enter a franchise agreement with established Korean business systems that can make the products we need. In this manner, we can simply “reproduce” the exact same system (which can produce the goods or services that we have need of). There is no need to “reinvent-the-wheel” but we can utilize the systems that are already in place to produce whatever we need for our people. There are many existing Korean manufacturing systems which we want to franchise into our operations in Siberia. See the link “Korean Manufacturing Videos” for more details.