Franchising is an authorization granted by a government or an enterprise to a person or group, allowing them to carry on specific business activities, for example as an agent of a company’s products. In other words, a franchise is a type of license that a party (franchisee) acquires, to enable it to access the proprietary knowledge. They also get access to the brand name of the franchisor’s company. It allows them to sell products and provide services under the franchisor’s name.
The Franchise Business Model
The franchise business model is often said to be one the best that ever materialized. Small and medium scale companies favour this method to a great extent because of its obvious benefits. The possession of a franchise entails specified costs, some control of franchisors along with fulfilling responsibilities.
Are you ready to be a franchisee?
Before investing in any franchise system, you should consider the money you will put in and your capabilities. You must also be honest about your goals. Choosing the best opportunity available to you must be one of your primary objectives. Always ask yourself if this is the ideal franchisor for you?
Finding the right opportunity
The questions to ask yourself are: “Do I have the right personality to be a franchisee? People are all different, as are franchises. There are many ways, other than franchisors’ websites to look for information on franchise opportunities. It including visiting local franchise outlets, consulting franchise manuals, attending exhibitions, and working with local franchises.
Select the right franchise
It’s not because a franchisor is new that the opportunity is not a great opportunity, but the more you know, the better your decision will be. The purchase of a franchise is similar to some other methods of investment: it involves risks. When considering a franchise, you should get to know about the likability and demand of their offerings. Are their competitors providing improved products? You must analyse the quantum of support and the reputation of the franchisor.