Posts Tagged ‘Franchise’
Jessica Ciniglio, a coordinator of marketing a website online Australian Franchises Franchise Directory wrote about 11 Tips 2011, writing that reveals the benefits gained from running a franchise business than to build your own business from scratch.
Here’s my brief and rather inscription above the canopy 4Benefits of Buying a Franchise, good read:)
1. Franchise has a higher likelihood of success than other business models.
Several studies have shown to be an indication of the success of the franchise 90% higher than 15% owned indication of the success of other business models. The argument was caused by reasons which suggest that the system, the franchise has been proven to work very well in the past and will work well for other franchisees.
2. The importance of a proven business model.
All franchises have a business model designed to generate high productivity and sales. This means that the franchise could be up and running quickly and save time of building systems and processes.
3. Franchise is more easily gain access to financing.
Lenders are more confident to provide financing to the franchise than any other business model, it’s because the franchise has had a successful track record of evidence (a proven track record of success).
4. Franchisors (franchise giver) provide support and marketing.
This most beautiful of owning a franchise business is that you are in business for yourself but you’re not running your own business. Because the majority of the franchisor (franchisee) to give great support to franchisee (franchisee). Support not only in building and setting up business at the beginning but also help you in all marketing activities and technical assistance needs of your business sustainable.
Buying a franchise is buying authentic brands, logos and other intellectual property rights of the franchisor. This will be an excellent marketing tool if you buy a franchise with a brand that has been known and trusted.
- Exclusive boundaries.
Franchisor will only allow a number of franchises (franchises) just in one particular geographic area. Then you only need to specify the location is quite good and the tough conditions that exist before deciding to buy a franchise. And pull it again you will be protected in those areas where there should be no other franchisees who trades in your area.
- Brotherhood between the franchisee (franchise)
One advantage that are rarely discussed in the franchise is a brotherhood between the franchisee. Actually this is a huge advantage because franchisees can share ideas and provide support between them. They can share the experience of trial & error to reduce their mistakes in running the business as a franchisee.
- Franchisor provide real estate and construction assistance.
Franchisor will help choose the right location for real estate franchisee, in which this is an enormous relief because the franchisor has had an excellent experience in building a business before.
- As a franchisee, you are given a training program.
The training program is one of the most important elements of the franchise package, which he giving you to use a new technology, learn a new skill, manage finances and staff. This capability is all very important for you as a business owner.
- As a franchise you have the flexibility to get up early and choose a job that you want to do.
Becoming a franchisee gives you much freedom and flexibility to choose what job would you choose. In turn you will have a better quality of life, life without the pressure of its own such as starting a new business from scratch.
Aspects of Differences Between the Franchise & BO
For those of you who want to start a business or a business with no initial preparation preoccupied by the hassle and quite careful in starting, franchise (franchise) and the business opportunity (BO) or partnership business opportunity is a great choice for you.
There are so many thousands of good business choice franchise or BO to choose from, all available in a variety of industries ranging from food service to retail.
Then what is the difference between a franchise (a franchise) or business partnership (BO) that?
There are at least 5 things or aspects to identify the differences between the two.
1. Branding and Operating System (SOP)
All units in the franchise business outlet or outlets that are using the brand name and operating system the same procedure, all have uniformity. Meanwhile, in the BO business partners are not required to use the brand and the same operating system, partners are given the freedom to change business as desired.
2. Pay Ongoing royalties (Royalty payments)
Franchise also requires the payment of royalties for the franchisee (business partner). Generally, royalties are paid every month and continuing throughout the ongoing cooperation between the two. While the business opportunity (BO) is free of royalty or no royalty mengenail terms, because essentially he broke buying and selling businesses.
3. Ongoing Support (ongoing support)
Franchise or the franchise agreement in the contract requires the availability of ongoing support, such as, marketing, training, control and monitor. While the business opportunity (BO) may be no support or assistance that is not sustainable but one thing to be done, because it does not exist in the sales contract.
4. Legal Disclosure (Accurate Information)
Franchisor or franchise business owner must disclose clearly and truthfully to the franchisee or prospective franchiseenya. Details include the company name complete with corporate data, the owner of the company’s financial statements until the last three years. In a business opportunity (BO) it is required, however, they still have to provide disclosure of such data.
5. Research (Research)
In the franchise all existing franchisees data recorded and written with the full disclosure of documents, ranging from the franchisee’s name, full address and store up to ignition. The prospective franchisee is possible to do research to ensure a good and healthy business than the business unit that has been running. While the business opportunity (BO) is difficult to identify because each unit stands in the name of a different brand.
Similarly, at a glance the difference between the two. Yet both are good for you are challenged to start a business in ways that are much safer.
Aspects of Differences Between the Franchise & BO
It depends on how comfortable you are reading the contract that you agree to pay X amount of money (usually a considerable amount) without legal advice from a good lawyer who specializes in franchising.
So, I need a lawyer to buy a franchise?
You need a lawyer to buy a franchise if the franchise agreement is very complicated, there are things you do not understand, or the mere fact of reading the entire contract is something that seems very difficult. Very important: Never sign anything without first having read and understood. Errors in pay very expensive business.
You need a lawyer to buy a franchise if you are someone who worries and doubts his own decisions constantly. Is that you? Is this something that would prevent you sleep peacefully at night? If you answered yes, then indeed you need a lawyer and hire a lawyer specializing in franchising.
What if I Franchise It is as profitable as I thought? Read the rest of this entry »
The California Department of Corporations has this guide talks about some things to consider when you decide to buy a franchise. Franchises have many advantages because in most cases the operations of the business and operations are established, but it also has hidden costs and other restrictions to be taken into account:
“Many people consider franchising a fast and easy to start your business. However, the purchase of a franchise requires a substantial sum of money and does not provide a guaranteed path to success. By investing time and effort to read this guide, is doing the most important thing you can do as a potential licensee, educating himself.
Any success you can have on the franchise is essentially a combination of factors: motivation and ambition and the care with which you select a franchise. The purpose of this guide is to provide valuable information about the world of franchising. Read this information to help you evaluate some of the problems that arise when considering a franchise business. Read the rest of this entry »