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.
