Are You Thinking About Owning A Franchise? In this post, for those who are thinking about owning a business, you must first need to know and understand what is a franchise.
FRANCHISE BASICS: WHAT IS A FRANCHISE?
Franchising is another way of businesses to expand and to reach their target markets without using or taking risks their own money. It is a method of distributing goods and services through a licensing relationship. In franchising, the franchisor (a person or a company that grants the license to a third party), gives the franchisee (the buyer of the franchise) the proven business system, proven pricing, products, and marketing techniques.
Nowadays, most of the businesses out there are franchises. Since they are usually national or multi-national companies, they already have a proven system that works. They have a brand that already gained the trust of thousands or millions of people. So, you don’t have to look for your target market since they already know and trust your franchise.
HOW TO BECOME A FRANCHISEE
After discussing the meaning of what is a franchise, let us now tackle about how to become a franchisee. To become a franchise owner, you must pay a franchise fee to your franchisor. Then after signing the franchise agreement, you will now have the right to the following:
– The brand’s name
– The proven business system
– The operations manual
– Marketing materials
– All other propriety materials
FRANCHISING IS ABOUT RELATIONSHIPS
Yes, to own and to run a franchise, you should consider the legalities and the law that you should abide. But above all, franchising is about relationships built between the franchisor and the franchisee. It is about how the franchisor supports the franchisees. It is about how the franchisee helps the franchisor deliver the best of their goods and services. Franchising is about how the franchisor builds and regulate the system of the brand itself. It is about how the franchisee will abide by the standards of the franchisor.
FRANCHISING IS ABOUT BRANDING
For example, when you enter a McDonald’s store, you trust the food and service that you will receive on that certain store whether you know its franchisee or not. Even if it is a newly opened franchise, you know that there are food safety standards followed by the company which makes you trust the food they cater and the service they provide. With these, it is easy to gain the loyalty of your customers. With a trusted brand, all you should do to establish is how you deliver the quality of your services and your personal relationship with them.
SUMMARY OF WHAT IS A FRANCHISE
A franchise is an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, e.g., providing a broadcasting service or acting as an agent for a company’s products. Franchising is not just about simply owning a business, it requires good relationship skills and following the rules and standards of a certain brand.
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