Franchising is the practice of using another firm's successful business model. What you are buying is the right to use someone else's trade-mark and their marketing or sales system, often within a given territory. Franchise System is some of the most businesses system. Such as another business system, buying a franchise doesn't guarantee financial success. A franchise usually lasts for a fixed time period, and serves a specific. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees.
According to the International Franchise Association (IFA), franchising is defined as an agreement or license between two legally independent parties which gives:
- A person or group of people (the franchisee) the right to market a product or service using the trademark or trade name of another business (the franchisor) The franchisee the right to market a product or service using the operating methods of the franchisor
- The franchisee the obligation to pay the franchisor fees for these rights
- The franchisor the obligation to provide rights and support to franchisees
- Flexibility: Many franchise systems can offer time management flexibility they need to successfully create a wealthy and healthy. This flexibility is the greatest motivations for many people to start their own franchise or business opportunity from home.
- Security: A franchise system can offer a secure and trusted business model that has been proven to work. It can also offer a trusted brand name, support and training.
- Option to be your own Boss: Many people enjoy the prospect of being their own boss. A franchise opportunity can offer the prospect to enter into the career world again, by offering a unique franchise system they can set up and create from home.
Before you buy franchise:
- Check the background of the operators of the franchisor.The internet can give news and stories about the franchise, both positive and negative.
- Know what you are buying and make sure you understand exactly what you are getting.
- Check the agreement.