Franchising has become a part of our life. This is a unique opportunity to open your own business under the auspices of an already well-known brand. What is franchising, and what features does it have?
Franchising is the transfer of the rights to use your system of business processes to a third party who decides to open a franchise business. Simply put, by buying a franchise, an entrepreneur becomes completely independent in terms of owning a company, receives a ready-made and polished business system, but at the same time he must agree and accept all the conditions and established work processes of the company from which he buys the franchise. When buying a franchise, the business system is already established and includes:
- the right to use the trademark;
- marketing system;
- obligation, or recommendations for the use of certain commercial equipment;
- the channel for purchasing goods;
- recommendations on the style of office design, business ethics of staff;
- personnel training system;
- product distribution system.
An entrepreneur who decides to buy a franchise may no longer think about a business idea. He just needs to choose a direction, a company and purchase a franchise from it. An entrepreneur does not need to think about developing a business plan, calculate profitability, all this will be prompted by the franchisor. The franchisor will give basic recommendations and an approximate scheme of work that will generate income. The only thing that is required from the entrepreneur at the very first stage is the financial investments that are needed to buy a franchise.
When buying a franchise, an entrepreneur buys a ready-made business, customer loyalty to the chosen brand. He only has to correctly coordinate all the work. After all, buying a business is only half the way, it is important to keep the company “afloat” and monitor the quality of service.
