123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Business >> View Article

A Quick, Comprehensive Guide To Franchising For Starters

By Author: Clint Shaff
Total Articles: 12


Franchising is a business strategy wherein a business owner (franchiser) gives a license (franchise) to a party or individual (franchisee). With this, the franchiser gives the franchisee access to the franchiser’s business and sell products under its name. The franchisee pays for initial startup and annual licensing fees for him or her to operate with the use of the franchiser's products, proprietary knowledge, processes, and trademarks.


Why Get Into Franchising?
Most people who wish to begin a business get into
lucrative franchising because it already has an established brand. It increases the chances of success due to proven marketing and business methods. Some franchises tend to be lower-cost, especially during recession. As franchisers want to build more capital or maintain stability during a recession, they offer discounts on their franchise fees. Furthermore, consumers prefer to go to familiar businesses during recession.


Some really large franchise businesses offer in-house lending and financial assistance for startups or operations. The franchise supports all of the business’ needs such as giving away promos and putting up advertisements. There is also a certain level of independence when you run a certain franchise. While you must comply with the agreement with the franchiser, running your own unit is almost all yours.


Costs
For starters, a franchisee must pay an initial franchise fee. This fee may amount to hundreds of thousands of dollars and may be non-refundable. This includes rent, construction, outlet, initial inventory, operating license fees, insurance fees, and “grand opening” fees.


As franchisees use the brand’s name, royalty fees must also be paid, which is based on the percentage of weekly or monthly gross income. Advertising fees may also be included in the agreement.


Selecting a Franchise
Despite an already proven business formula that comes from lucrative franchising, there are also risks. When selecting a franchise, one must consider the demand, competition, operating abilities, brand reputation, franchisor’s experience, training and support services, and growth.


A franchise broker or adviser will help the party choose the right franchise by reviewing the investment money and the franchising opportunities compatible to the party. To know more about getting a franchise, visit the website at business.ftc.gov.

Total Views: 59Word Count: 349See All articles From Author

Business Articles

1. Top Reasons To Buy A Lamborghini Aventador Super Car
Author: Jason Jones

2. What Are The Most Common Carpet Stains At Your Oahu Home?
Author: Kleenprohawaii

3. Our Mission - Cjs Haritha Homes
Author: 0

4. The Shared Fibers Wallet In-depth Review
Author: Lao Yutang

5. The Worst Things About Orlando Wedding Photography That Budding Wedding Photographers Must Take Into
Author: Vikram Kumar

6. Get The Right Ceo Mailing Lists For Your B2b Targeted Marketing
Author: germany email datasupply

7. Carpet And Upholstery Cleaning In Newport Beach
Author: carpetcleaninginnewportbeach

8. Meishen Hold A Contest Of Tug-of-war
Author: hu Allen

9. Avail Budget Interior Designers In Bangalore For Best Services
Author: johnsdaniey

10. Looking For Quality Dietitian Leads To Grow Your Business? Switch To Averickmedia
Author: Andrew Rayel

11. Buy Most Noteworthy Quality Upvc Item On-line
Author: sandip m

12. Burnerindo Teknik Utama
Author: btu.co.id

13. Huge Profits In Carpet Cleaning Business
Author: Drcarpetirvine

14. Tips For Buying Shin Pads For Kids
Author: Sahah Chan

15. High-quality Yet Affordable Plumbing Services In Durban
Author: Donald Frank

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: