How To Get Started in Franchising
Franchising is a means of distribution and marketing through which the franchisor grants to a natural or legal person – the franchisee – the right to operate a business concept, marketing a product or providing a service under the business format franchisor and under its own brand.
The franchisee is the investor, physical or legal, who acquired the right to market a particular business concept and all its inherent methods developed by the franchisor. In turn, maintain links with the latter to receive both initial and continuing assistance.
The franchisor is a natural or legal person who has developed a business under a particular method concerning a product or service and is looking to expand through the search for investors to which grant the right to operate under its brand and its operational and organizational method. The franchisor will provide initial and ongoing assistance to these investors, franchisees – through counseling, training and guidance for developing the business concept.
In general, one could say that when a company allows an investor to use your name, complete corporate image and business model for revenue, there is a franchise. The company owns the name, image and knowledge is called franchisor while the investor who acquires the use of those assets during a given time and under specific conditions is known as a franchisee.
Thus, the main features that make the operation of this system are:
It is a continued collaboration between the franchisor and individual franchisees, both legally and financially.
The franchisor grants its franchisees the right and the obligation of running a business according to guidelines defined and successfully.
This right entitles the franchisee, in exchange for a payment, to use the trade name and brand of products or services of the franchisor. The franchisor must also provide their franchisees “know how” or expertise of your business, through a process of initial and continuing training.
This association is determined by the frame and the duration of a written franchise agreement, agreed between the parties to that effect.
Your Franchise Options
You need to choose the best option of franchise that matches your interests, skills and your pocket. There is a variety of options from B2B franchises, automotive franchises, tutoring franchises, computer franchises and many other options. You can take advice from a franchise consultant. A professional can assist you to choose the best option by rationalizing it.
It can take around thirty to sixty days for you go through the process of opting for the right franchise. You must look your timing. When you enter into business with a franchisor, both of you aim for business success. However, it is you who drives the business. The future profitability of you franchise depends upon you hard work management style and determination.
You need to ask a question to yourself “Am I a franchise person?” before buying a franchise. For your business’s success, you must have a leader inside you. If you have good people management skills, you definitely are a franchise person. Your leadership will help you in all stages of your franchise business, from starting the business to hiring the right human resource and making good customer relations.
Another important trait is teamwork. The best of franchises around the world are highly team oriented. A team oriented culture would be the key to the success of your business. Continuous learning is also very important for franchise business. Usually it is the franchisor that conducts regular training and development. You should also seek to learn from your own mistakes.
Lastly, you must be willing to follow an already established system. The formula for a business success is already decoded, all you have to do is follow the rules and reap the benefits. All of these are essentials for how to get started in franchising.