Monthly Article


December 2009

Essence of Franchising

hat is the REAL ESSENCE of franchising? Is it about numbers game? Do you gauge RELIABILITY of a product or business on the basis of how many franchisees it has? YES & NO! YES because it may be an indication that the product is good. And NO because that is an arguable proposition! First, you’ll have to qualify. What could have brought about the numbers?

1) Perhaps the product already has a demand and among the available franchisors, maybe, it is the LEAST priced! - Many neophyte entrepreneurs would like to join a bandwagon but because of their limited capacity, they would tend to opt for the “cheapest” package they can find despite its flaws and substandard quality. These will inevitably result to MUSHROOMING and therefore cut-throat competition would ensue leaving the consumers to be at the losing end as they are deceived with a so-called “lower priced” product but with QUESTIONABLE quality!

2) Maybe the Franchisor does not care about TERRITORIAL MARKET OVERLAPPING and leaves its franchisees to battle it out with competitors and among themselves because they (the Franchisor) only care about their NUMBERS! This is dangerous, because this could lead to PRICE WAR. Perhaps, at the onset, one could say this is beneficial to the consumers but no! Because PRICE WAR could also trigger shortcuts from some unscrupulous franchisees just so they could compete! These SHORTCUTS will SURELY COMPROMISE the QUALITY of the product or service!

Therefore, YES! We can say that the ESSENCE of FRANCHISING may be gauged on the number of it’s existing franchisees...but the emphasis should be more on the number of existing QUALITY and RELIABLE franchisees… those that do not shortchange their valued clients...those that give value to SERVICE, PRODUCT QUALITY & CUSTOMER SATISFACTION! How would you like to have a franchised business that seemingly appear to have many franchises but trails with it DISGUSTED FRANCHISEES who are left to contend with SLOPPY services because that's all their CHEAP franchise could afford to deliver! And WORST, it brings with it a LOW QUALITY of product that does not HONOR the value of the hard-earned money of the consumers!

Aquasoft, through the years, is painstakingly working on the REAL ESSENCE of franchising! IT IS PROUD to have in its roster, FRANCHISEES with unquestionable integrity and are known in their respective communities to be HONORABLE businessmen and women. Through the years, they have proven to be steadfastly following the tenets of franchising! They make sure they give VALUE to every service they render, and the QUALITY of product they deliver! For them, shortchanging is a MORTAL SIN! They are the REAL ESSENCE of an AQUASOFT FRANCHISE, the only way it should be!

The basic parameters that Aquasoft follow in accepting Franchise Applications are the following:

1. Applicant’s financial capacity and business background – the franchise package price and payment terms are only negotiable to a certain extent, otherwise, the PRICE is upheld because along with it comes Aquasoft’s years of valuable experience and technical expertise and know-how that a probable franchisee is assured of. QUALITY HAS A PREMIUM therefore those who desire to franchise Aquasoft know its value and quality and are willing to pay its price because the returns are not only in terms of profit but in gaining GOODWILL and TRUST from the consumers !
2. Proposed location – Franchisees are carefully selected and prequalified according to the location it is proposed to be established. Aquasoft strictly adheres to its territorial protection (meaning no other Aquasoft franchise is allowed where there already exists an Aquasoft Franchise within a certain radius based on accessible road) thus protecting would-be-franchisees with its immediate market. Franchisees are strategically distributed to a limited number only per district based on its population thereby assuring franchisees with the MAXIMIZATION of its projected market.
3. Applicant’s franchising & marketing acumen – Franchisees are to undergo basic franchising orientation to determine their capacity, sincerity of intent, and the discipline and passion to adhere to the principles of franchising. The applicant, if accepted, is considered not just a franchisee but a partner in perpetuating the ideals of Aquasoft franchising as well as it’s ally in creating a market niche and strengthening the BRANDING of Aquasoft in the processed water market.

Corporate Communications Group/
Research & Development
Aquasoft Water Systems Inc.
VisMin Regional Office
December 2013 Edition