The concept of a franchise (from the French. Franchise - a benefit) means the acquisition of the right to sell goods or services of a well-known brand. This is a mutually beneficial alliance, in which the brand owner has the opportunity to receive royalties (monetary compensation) for the use of his name and trademark, and the entrepreneur receives a well-known name, training opportunities and proven technologies. The franchise option for entrepreneurs has a number of distinct advantages.
An entrepreneur who has bought a franchise license from a franchisor is called a franchisee. He thereby acquires materials, training and consulting. But the biggest plus for him will be a business partnership with a franchisor, which often provides an opportunity to purchase equipment from its partners with significant discounts.
The franchise gives the franchisee the confidence that starting his own business, he will not be left alone with all the problems that are inherent in the business. It is insurance against many business risks. Having received professional support from the franchisor, in any case, he remains the owner of this enterprise, which makes him an independent partner who is not threatened with dismissal. He safely gets rid of many mistakes and difficulties that other start-up entrepreneurs face, from possible wrong decisions and unnecessary risks he is insured by the support of the franchisor.
A franchise gives an entrepreneur the opportunity, receiving reliable information and ready-made business solutions, to choose the right location for his enterprise, make its design and receive confirmation that the enterprise is functioning properly. He has not acquired experience in the struggle for existence, but bought with money, but it is worth it.
Franchisees have guaranteed support before starting their own business. He participates in training programs and masters the management system, already "tested" and optimized by the brand owner. He has been working directly with his franchisor for some time, getting all the necessary skills and answers to questions that he may have. It receives constant support even after its opening.
A franchise allows you to define and establish a clear territorial division for this type of business. The territory is determined by the franchisor, who controls the uniform coverage of its retail network. This allows you to optimize interaction with the consumer of goods and services and eliminate unproductive competition.
