Introduction: All About the Franchise Businesses World
Franchising is a process in which there is a joint collaboration between legally and financially separate companies, which sells products, services and / or technology.
Involved in this process the following elements:
o The Franchisor, and their
o individual Franchise Businesses.
In franchising, the franchisor provides and enforces the right and obligation to manage a Franchise Businesses in exchange for use of the Franchisor:
o The trade name
o Use the services know - how
o Make use of methods and business techniques
o Provide an economic benefit
Franchise Businesses Advantages
The numerous advantages offered by the Franchise Businesses have increased the interest substantial amounts of investors for this type of business. The basic advantages are:
o Becoming part of a business that has been previously found and value for money by the Franchisor and the general public. This reduces the risk of starting a business alone.
o Being able to share the know - how of the Franchisor.
o Be secured by the prestige of the brand that provides an acceptance and recognition at national and / or internationally.
o Technical Assistance and Continuing Education by the Franchisor.
o Advertising and Marketing covered by the Franchisor.
o In many cases financial assistance from the Franchisor, and information on any claims.
Disadvantages of Franchise Businesses
One of the main disadvantages Excess produce is the disagreement between franchisor and Franchise Businesses in the processes and methods of application in the administrative management of the business. Additionally:
o When starting a Franchise Businesses startup cost franchise network, generally, is higher than you pay when you start a business.
o The Franchisees do not have absolute freedom in the decisions made in the management of the company, by contrast, are subject to the decisions made by the Franchisor.
o Periodically and according to the franchise agreement, individual franchisees will have additional costs for the operation of the business.
o Also according to the provisions of the franchise, the franchisor may be entitled to purchase and cancellation of the contract.
Franchise Businesses Types
There are, in general, three types of Franchise Businesses. Service franchise currently has the greatest presence is in the market.
o Excess of Production. Franchise Businesses is the brand owner and manufacturer of products distributed franchisees.
o Distribution Franchise Businesses. The Franchisor selects a list of products manufactured by other companies for distribution through retail outlets in your network.
o Industrial Excess. Is where the franchisor grants the Franchise Businesses the right to manufacture, technology, product marketing, branding, management and administrative procedures and sales techniques.
o Deduction of Service. The franchisees get a different formula to provide services to the user, a method experienced and extremely efficiently by the Franchisor
It is clear that the exemption represents, today, that may already be the system most widely used business expansion and developed modern economies.
Any company that enjoys a proper position in its operating environment and that has some prospect of growth, can not fail to see the Franchise Businesses one of the most profitable and effective alternatives for achieving any target on the new coverage markets.
Whatever industry in which the company comes to operate, either in industrial tasks, with tasks of marketing and / or distribution or in the provision of services, the Franchise Businesses has to be regarded as an alternative, if proven feasibility, will report to the company countless distinct advantages. Moreover no point in starting any expansion process without having examined before the possibility of franchising.
It is true that the option to grow in excess is one of many alternative development, but the fact remains that this formula is in its requirements and assumptions made, and to the ability of these companies and existing markets, the real reason for its dramatic progression.
Indeed, it is the goodwill of the trademark is granted, the continuing assistance in running the business and, above all, consistent layout and transfer of experiences, making the Franchise Businesses a real competitive approach.
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