Franchising is a business model which allows one company to run under the established manufacturer of some other company and to market its services or products for a particular time period.
Franchising may be an exceptional method to run a company and can be an alternative to establishing your own organization.
But, it's necessary to carefully look at all of your options before purchasing a franchise. You can get more information regarding small business franchise via http://www.franchiseko.com/.
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Before picking a franchise you need to:
- Know about franchising and what's involved
- know the Franchising Code of Conduct (the Code)
- know your rights and duties under the Code.
There are 3 Kinds of franchise:
Business: Here is the form of franchise many men and women understand. As the franchisee you've got the right to use the franchisor's intellectual property in your company. A good illustration is a fast food outlet.
Merchandise: This is the point where the franchisee sells the franchisor's product in the retail or wholesale outlet. As the franchisee you'd be granted exclusive rights to market the item within a particular place. A good illustration is an automobile dealership.
Performance or production: Within this version the franchisee produces this item. The franchisor gives a vital component or know-how' into the franchise. A good instance is the soft drink market.
A few advantages are given below.
- Association having a proven brand, reputation, service or product.
- Assist with lease negotiations, website development, and store fit out.
- Assist with purchasing gear.
- Initial management coaching and continuing support.
- Marketing and promotion service.
- Accessibility to established normal procedures, operating manuals and inventory control systems.
- Accessibility to monetary systems.