Franchising is the use of a brand and a successful operating business model of an existing company. One of the main conditions for franchising is a subscription fee for the opportunity to do business and an initial payment for using the franchise. However, it should be understood that there is fragmentation without money investment.
What franchising looks like without investment
No-investment franchising is an ideal way to get started quickly for young and motivated entrepreneurs who, at the beginning of their careers, do not have their own capital to start a business, but have a lot of strength and drive to realize their ambitions.
The free franchise is a result of intense competition. To conquer new markets, franchisor companies have developed a new scheme based on franchising without investment. It should be understood that this type of business only provides for the absence of material investments. The future partner must invest his time and energy. He must be prepared for the fact that his working week will last much longer than the 40 hours prescribed by law. It will be desirable to have your own ready-made team of like-minded people.
Franchisee requirements
A franchisee, that is, a partner who acquires the right to use a trademark, must meet a number of requirements.
A potential partner needs to be able to work with staff. To do this, he will need certain character traits. Experience in a managerial position will not be superfluous.
A prerequisite is the ability to work with the necessary documentation and an understanding of the workflow system. In addition, knowledge in marketing, sales and communication with people will be useful to the candidate.
In addition to the requirements for a potential candidate, the franchisor makes requirements for the region in which the business project will be implemented. In most cases, the franchise is designed for cities with a population exceeding 300,000. In addition, the region to which the business will be expanded should be of interest to the franchisor. Otherwise, the project may have a too long payback period or be stranded at all.
How free phrashiz is implemented in practice
For the documentary implementation of a franchise related to retail trade, the franchisor's partner is formalized as a director, in accordance with the contract and the labor code. With such a business, the franchisee is not a full-fledged owner of the business, cannot independently regulate all financial processes, influence the choice of suppliers and change the company's policy. About this, the agreement will spell out all the obligations of the parties and the terms of cooperation.
The scope of the franchisee's responsibilities includes finding and arranging rental space, supplying goods, running advertising campaigns, finding and hiring employees, and most importantly, ensuring profitability.
