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Franchising for Future Returns


Franchising is a successful business model that offers profitable business opportunities for the entrepreneurs. It is an approval that is granted by one company to an entrepreneur to sell their products and services in lieu of franchise fees, investments, areas and location.

Why franchising?

An established business owner who wants the expansion of his brand can take a franchise route. Franchising helps the business owner to spread the wings of his venture far and wide with the helps of franchises.

For aspiring entrepreneurs taking up a franchise of an established business is the best foot forward as the franchise is already successful and people know the brand. So as like independent business owner, one need not to worry about the success of the brand and about the popularity of the brand. Moreover, franchisee gets all the essential support from the franchisors to make his franchised outlet a success.

The most significant factor that can make or break a franchised outlet is the mutual understanding between the franchisor and its franchisees. Franchisees need to abide by the support of the franchisor. The franchisor and the franchisee should respect the terms and conditions mentioned in the franchise agreement, which is signed for some duration. Franchisor provides the franchisees the right to use his franchise for a particular time. Once that tenure expires the franchise agreement can be renewed depending on the need and mutual understanding between the two. If franchisees desires he can get the franchise agreement renewed after completing all documentations and fees.

A legal contract or an agreement between the franchisor and franchisee, to operate the franchised outlet under the guidance of franchisor and use the franchisor’s name or trademark is called franchise agreement.

Franchisor provides all essential support, training and hand holding to make a franchised outlet a success. He helps the franchisee in finalizing the location, recruitment of staff, training for staff, and running the operations of the outlet. Sometimes the franchisor also helps the franchisees in getting his loans and finances from banks or financial organizations.

Advantages of franchising:

The advantages of franchising over independent businesses are as follows:

Franchising is risk free and it is caters to the already established business whereas in case of independent business no one knows the brand.

Franchising is apt option for the business owners for expansion because the entire investment is done by the franchisees.

Franchising does not need any kind of advertising and marketing from franchisees because the franchisor is already taking care of that.

Franchisor hand holds the franchisees for initial months which are not possible in case of an independent business.

Franchising also provides franchisees an opportunity to run their outlets with all the support and training from the franchisors which is missing in n independent business.

For more information related to this franchising please visit: franchiseindia.com

 
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