Franchising
is a licensing arrangement where the franchisor (business owner) markets or
distributes trademarked goods or service through franchisees (affiliated
associated). Although, these franchisees own terms of franchising that
agreements and their establishment require to share operational
responsibilities with the franchisor.
Today,
franchising is enormously popular with a large number of establishments across
the world. Many people choose to own a franchise based on the trust and
assurance that success is guaranteed when it comes to starting a business.
Franchising has been incorporated by many entrepreneurs enthusiastic to start
their own company. However, the features of a franchising business are
contradictory in some crucial respects from those of other start-up businesses.
Advantages of Owning
a Franchise
1.
Profits:
A franchise opportunity can be hugely
profitable. As most top franchises such as Tim Horton’s and McDonald’s incline
to have higher franchise costs but are more likely to generate high returns on
investment.
2.
Lower
Failure Rate: Statistics show that franchisees
stand a higher probability of success compare to those who start independent
businesses
3.
Buying
Power: Franchise business gets to benefit
from the collective buying power of the parental company as the franchisor can
manage to pay for buying in bulk and share the savings along with franchisees.
4.
Advertising
and Promotion: Many franchisors offer their franchises
with a broad-spectrum of point-of-sale advertising materials such as posters,
mobiles, brochures, etc. Since such materials are most expensive to produce,
they would otherwise be beyond the reach of some individual franchisees.
5.
Assistance
for Start-Up: Many franchises are the turnkey
operations. When you buy a Business franchise, you get all the advanced
equipment, instruction or training, and supplies needed to start the business.
Your franchise will reap the benefit of the parent company's national marketing
campaigns, for instance.
6.
Research
and Development: Franchising, then,
can provide a huge lift in this regard, for many franchisors maintain ongoing
research and development systems to develop new products and forecast market
trends.
SELECTING THE BEST
FRANCHISE OPPORTUNITY
Franchise
opportunities are available in a wide array of industries. Business Sale Purchase has highly experienced
consultants in an advisory on the best franchise opportunity. Finding a
suitable Franchise opportunity has become an effortless process. Based on your
finding, preference, business category, and location, Business sale purchase
list the most reliable option from across India.
•
Analysis
of Self: Know your personal strengths,
weaknesses, and capacity before signing any franchise contract. Prospective
franchisees must have an understanding of their business and personal
objectives before starting the search for an appropriate franchise.
•
Competitive
research of Industry and Market: Potential
franchise owners need to evaluate the industries of their interest. Also,
require to determine whether the franchisor's major goods or services are in
demand in the communal. Similarly, several competitive research on the market
in the specific sector is essential.
•
Study
of Franchisor: Entrepreneurs interested in
franchising should be well-informed about the company’s strengths and
weaknesses. Factors to be considered comprises of franchisor's profitability, growth
patterns, organizational structure, litigation history, public reputation, fee
requirements, financial management capabilities, and relationship with other
franchisees.