Do You Know What is a franchise business ?

                                                                           Do You Know What is a franchise business ?

         

A business in which independent entrepreneurs are able to use the rights to a larger company’s business name, logo, and products to operate an individual location. The franchiser is the owner of the larger company who sells the rights to license their business, and the franchisee is the third-party owner and operator of the business locations.

In a franchise business, the franchisor provides a developed way of doing business, ongoing guidance, systems and assistance in return for periodic payment of fees and/or purchases.

Buying a franchise can be a viable alternative to starting your own business. Listed below are some advantages of buying franchise.

Advantages of buying a franchisee over starting from scratch:-

 

  1. Much of the work needed to launch a business idea has already been done. Products and services will have been established and tested. This includes already recognized branding and trademarks. The franchisor will also have a good idea of what locations and demographics work best for their system.
  2. Support from a larger network of businesses. Not only does the franchisor give you support in the form of training, an operations manual for you to refer to, and additional ongoing advice, you can also get support from other franchisees in the network. Annual conventions or meetings are a common occurrence for franchises.
  3. Ability to tap into the collective buying power of the franchisor. In many cases, the franchisor has developed relationships with providers that allow its franchisees to purchase goods at a lower cost compared to the price independent owners of a similar business may be able to negotiate for themselves.
  4. In cases, financing may be easier to secure. Banks and other lenders are sometimes more apt to loan money to those looking to buy a franchise because of an existing knowledge of the franchisor’s product or service.

 

Renee Friedman, who bought her first FASTSIGNS franchise in 1993, was the preferred signage vendor for the 1996 Olympic Village and currently owns and operates a FASTSIGNS franchise in Central Orlando, explained, “Being part of a strong franchise, provides opportunities and resources that would not be available as an independent owner. If I need help, have a question about a product or budget or hiring or anything, there’s someone standing by to assist me. We have so much training at our fingertips!”

During the corona virus pandemic, many companies that use a franchising model have seen success despite new challenges around safety and consumer expectations.

The International Franchise Association's Franchise Business Economic Outlook for 2020 projects the number of franchised business in the U.S. will increase by 1.5% to a total of 785,316 — adding 232,000 jobs this year to reach 8.6 million employees. This is the tenth year in a row of establishment growth

Whether you're looking for a low-cost franchise, or ready to go all-in on a high investment franchise there are options for you. To learn more wait for our next post .

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