Setting up a franchise

By definition a franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business’s (the franchiser) proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business’s name. In exchange for gaining the franchise, the franchisee usually pays the franchisor initial start-up and annual licensing fees.
By choosing a franchise you join an established, national (or international) brand and instantly have access to a broad referral network, experienced and ongoing business and marketing support, proven technology and in-house training. With the brand recognition that comes from an existing company it’s also easier for franchisees to find, train and retain good employees.
Whatever sector or brand you choose to become a franchise of, remember that apart from expecting a certain level of training and facilities, franchisers will also have different requirements as far as budget is concerned. License acquisition fees, royalties and marketing contributions change from brand to brand, so pay attention to the fine print and make sure you’ll be getting your money’s worth, it goes without saying that the cheapest option isn’t always the best choice.
Once you have selected the right franchise for you, do some research on the area you want to set up shop in. Growth potential, competition and available market share, are all key factors to keep in mind when selecting the most suitable territory to establish your business in.
To learn more about how a franchise works, click on the link.

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