You would have seen many of the stores and restaurants like Pizza Hut, Dominoes, The UPS Store, and many more around your city. But did you know they all are franchise? A franchise business is a business where the head company or The Franchisorin exchange of a royalty fee, provides a third party the right to use their businessname, logo, brand, and business model. The third party is called Franchisee. Franchise is one of the most common and profitable way of becoming an entrepreneur. If you want to buy a Franchise, you can go to online marketplace like Business for Sale Vancouver to get more information.
A lot of people, when they think of franchising, their first focus is the rules and regulations set by the government. Even though the law is without doubtone of the most important factor, it is not one of the most dominantfactors in Franchising. Franchising is more about thevalue of the brand of a company, how a Franchisee gets the support from Franchisor , how Franchise meets the standards set up by the Franchisor , how a Franchisee uses the brand name and logo of the Franchisor , how the franchisee fulfils thecommitments to maintain the quality of goods and services, etc. Nevertheless,Franchising is mainly about how a Franchisor and Franchisee exist together in a relationship while offering best possible good or services for their customers. To know more about Franchising you can refer to marketplaces like Business for Sale Vancouver.
Many people dream of having their own business to run and Franchising is a great way to achieve that dream. Acquiring a Franchise can prove to be one of the easiest and quickest way to own a successful business. However, it would be better if you look through all the positive and negative aspects that come with the Franchising before making any final decision.
Less RiskInvolved– The risk involved in acquiring a Franchise is lot less as compared to any start-up business. As a Franchisee, you work with a successful business structure that has already been tested and optimized by the Franchisor Company.
Established Product Lines or Service Offerings: When you buy a Franchise, you also get with it a well-established product line set up by the Franchisor. You do not have to worry about what product or service you will sell, how will you sell it, or who will be the target customers.
ContinuingSupport: As a franchisee, you will get an on-going support from the Franchisor. They support with site selection and development, provide training modules, supply network, marketing assistance, management support and training, fresh products etc.
No past experience is needed– To buy a Franchise you do need any past experience in the industry or markets where the Franchisor company operates. The Franchisor will train you and equip you with all the necessary knowledge and skills required to run the Franchise business successfully.
High success rate: Buying a Franchise business canincreasethe chances of business success at the initial stages of the business. As your business name will be associated with an already established brand name and logo, you will also get an already existing target customer base to start your business with.
Easy to obtain finance: You won’t have any trouble finding the investors or lenders to fund your Franchise acquisition if the Franchisor have a good and strong reputation in the markets.
Almost No Freedom– The franchise is not an independent business venture. You will have to work according to the restrictions and standards set by the Franchisor Company and will have to consult with them before making any changes in the business operations.
High Costs– Theinitial investment cost may be higher than you expected.Along with the preliminary costs of purchasing the franchise, you will also have to pay on-goingservice fees and you may have to buy the products from the Franchisor.
If you want to have a look at other options than Franchising, you can refer to one of the prominent marketplaces like Business for Sale Vancouver.