Franchise

 We have all heard about franchise business—What is it? Everybody is aware of its growing popularity in it. So let’s get started, isn’t it.

A franchise business is a business which is established or operated under an authorization to sell or distribute a company’s goods or services  in a particular area. Basically it is a dealership. Now between whom? A Franchisor and a franchisee. So who are they? Franchisor is the owner of company and “Franchisee” the dealer.

Highlights Of A Franchise Business

As we all know it’s a legal right or privilege granted to a person or group by the company. What are the things of which authorization is granted—

  • Business Logo
  • Name
  • Model to a third party retail outlets

Which are basically independent units known as franchisee, third party operators.

Importance Of A Franchise Business

The franchise partnership helps in building and sustaining networks across

  • cultures,
  • geographies,
  • administrative,
  • political borders
  • and sectors.

When a company desires to expand whether within the country or outside. This type business turns out to be the best. As everything is new to the person who is not native to that place.

World Famous Examples

World’s most famous examples which are gaining popularity and doing a marvelous business through franchise. Some of them are—

  • Donalds( I’m lovin it)
  • Subway
  • Lakme
  • Kwality Walls
  • HCL
  • Tata
  • D’damas
  • Adidas and many more

So these are quite a few of them who are known each and everyone. These are of the trusted brands on whom you can rely even keeping your eyes closed.

Few Things To Be Kept In Mind

While entering a franchise business there are a few things that a person should take note of, like

  • Need to have idea about it

While entering this world a person must have an idea about the company.

  • Need to gather info about the company’s background

Like how many members are there, how many franchisee are there, what relation it holds with its members, and many more.

  • One of the most is that how is the franchisee being performing

Company’s performance is very much mandatory in the long run. As its performance in the past prepares the road for future.

  • Interaction

On how long intervals do the franchisor visits. How it takes care about the working.

  • Payment

In order to invest, the franchisee has to pay a starting fee for the business, training and equipments required. Once its operational, the franchisor had to be paid an ongoing royalty payment, either monthly, quarterly or annually.

  • And many more

 

Though the list is endless but a franchise should take note of every minute detail so that its beneficiary for the progress of its franchisee.As this will pave the road for a better tomorrow.

 Benefits Of Franchising

The benefits which a franchising provides is a good number of them such as

  • The most important is this helps in building relations

This helps in building relations between people of two different entities. People of different cultures interact, exchange ideas. So it serves the purpose of unity in diversity.

  • Cultural interaction
  • Exchange of views for better progress
  • No extra efforts as products are very much tested

Advantages

A good number of advantages it provides such as

  • Tried and tested services
  • Wide view about products success
  • Long-lasting relation with customers
  • Anybody can be a franchisee
  • Better product knowledge
  • Customer service standards
  • Training on each and aspects of a business
  • Better promotional strategies which are easily not accessible

Its Time To Conclude

We a hope that this article has served the purpose of making you all aware what exactly is a franchise business is all about. How it works. Merits and demerits. To achieve something great in life a person must put in his best. Ultimately the franchise business is acting as a connecting link between two different people with a common interest.

So, we can see that the franchise business is not only serving the ground for the growth of a business but also helping in building relations.

Distributor

Distributors

A distributor is a person who performs the activity of distribution of goods and services for the satisfaction of its consumers or we can say that they are a part of channel mix. It very important to have good distribution service of your commodities because when you have a good distributor that is making your product fly off the shelves make sure keep to your product commodity coming

There are three types of distributors:

1. Intensive Distributors

This type of distributor is normally used when the manufacturer wants to sell their products as immediately as they can through the widest possible channel.  Intensive distributors will work with many vendors and usually sell large volumes of goods at lower prices and earn lower margins. They mainly deal in deals in perishable goods.

2. Exclusive Distributors

This type of distributor is used where it is highly important to have proper control maintain brand integrity, brand image, and often higher pricing points. This allows exclusive distributors to sell to all their suitable retailers. Exclusive distributors are mostly in contact with big companies.

3. Selective Distributors

This type of distribution is where manufacturers specialized distributors who are experienced at distributing their products.  The number of retailers in this channel is Restricted to avoid adulteration in goods maintain a high level of service and retain high retail pricing maximization of profit for the whole distribution channel.

 

Agency

Agency

An organization which provides a particular service on behalf of another business, person, or group is called an agency . It is important that there must be an agreement as an agency depends on agreement and not necessarily on contract. There is various kind of agencies, for example, advertising agency, employment agency, news agency, government agency.etc

The biggest task for any agency is dealing with their clients. As there are different types of agencies every agency must maintain a carefully researched list of clients who would be a perfect fit for your services. Maybe your firm has experience in the client’s industry, the company has reported on problems that align with challenges you’ve solved in the past, the company is of a specific size, etc.

To build a well-recognized name is a really tough job because the agency doesn’t have the larger marketing budget and ability to reach a wider demographic. This makes it hard for a smaller agency to gain recognition in this competitive world. which is essential to winning the trust of potential customers. Customers also go with names they know when it comes to hiring agency for a business, and smaller agencies have a hard time getting name and recognition that due to the nature of agency business.

Online Business

Online Business

Online business is simply doing any or all business activity using a digital platform. You can do online business in any of you can create a blog, e-commerce site or buying selling of goods and services. An online business provides a huge variety to conduct a business. Whenever you search about an online business you will get thousands of business idea Even you will also get ideas with zero or no investments Like doing business as freelance, blogging, online videos, affiliate marketing and etc.

Online business gives you time flexibility you can conduct business activity at any time or from anywhere you want Online business is 24/7 accessible to all customers .it also gives ease of access to consumers as well as to businessman also buyers they can buy goods and services from anywhere. it saves their time as well as money.

One of the biggest advantages of online business is that it saves time and money which is really very important factor in any business. Due to this feature, it’s highly in demand nowadays. For conducting business online it doesn’t require any too much investments and also eliminates intermediaries which are beneficial for both manufacturers as well as consumers.

Wholesalers

Wholesalers

Wholesalers are person or company who buy a lot of goods and services from Manufacturers and sell those goods to retailers. Wholesalers act as an agent or intimidator between manufacturers and retailers.To become wholesalers it requires a large amount of investment because wholesalers have to buy plenty of goods and services and they also need warehouses to store those goods. wholesales determines the price for resale because the supply of goods is in hand of wholesalers.

The most important function of wholesalers is breaking of bulk. As we know wholesalers have to buy goods in large quantity from manufactures but it has to sell goods to retailers in small amounts as demanded by different retailers at different places. we can also term breaking of bulk as a dispersion of goods to different retailers at different places.

Wholesalers are also risk bearer because any damage to goods in a warehouse or in transit is bear by him. The risk of wholesalers is also increased because he provides finance to both retailers and manufacturers. Sometimes wholesalers give credit facility to retailers and in case of any bad debt from any of retailers, wholesalers have to suffer a loss.

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