Impact of Goodwill on Franchises
Maurice Roussety Official Account on DailyMotion tells about the new ways of valuing the goodwill of the parent company. The advantage of owning a franchise is that you have the goodwill of the parent company. Goodwill is the reputation or good name that your parent company already possesses and the franchise can attract customers based on that. When a customer looks for a specific service, he will be subjected to multiple options, but his choice will mostly depend on the good will of a company. The customer will most likely choose a franchise, whose parent company has a great goodwill, because the customer feels at ease. Franchises have customers waiting for them because of the pre-existing goodwill of the parent company.
According to Maurice Roussety, franchising is successful not only because it is variable, but also because it is lucrative. Dr. Roussety created the Franchise Risk Imputation Model, which establishes a structure based on two standing pillars- risk -free rate and total risk. ”An Integrated Economic Model for the Evaluation of the Franchise Systems- a Synthesis of Agency and Finance Theories”- is the PhD thesis of Dr. Maurice Roussety. Dr. Roussety possesses a strong academic background and he has also helped many companies around the globe with their franchise requirements.
Maurice Roussety on SlideShare strongly feels that in Australia, franchise systems should be rated. He states that in Australia, the franchises solely produce excess revenue of $144 and has employed 460,000 individuals in the over one thousand franchise system. Franchises are one of the most secure options for would be business persons as it involves lesser amount of risks.
The brownie points of starting a franchise includes, relatively low startup cost, easier management, easier expansion, better chances of grabbing the market, greater security, less recruitment and greater chances of making it to the international market. Dr. Roussety is a motivational speaker, and has helped many companies find out their follies. He claims that partnering with a greater, global business provides the necessary resources and infrastructures to hold a strong position in the business of the uranium era.
Maurice Roussety is an expert in the field of marketing and finance and he holds an undergraduate degree in economics from the Monash University. He is also a Master -Degree holder in Business Administration and in Leadership from the University of New England, in South Whales. He also holds a PhD degree in Intellectual property and Franchise-Business Valuation from Griffith University in Queensland. He opines that franchises can be the first step of a flourishing business. In the rat race of business start-ups might fail to create a niche of its own, but with franchises, the risk is much lower.