Franchizing is, some kind of, business rent. The franchisee (the one who buys a franchize) pays for use of a name, symbolics, knowledge of the franchiser (brand) is right. Business on a franchize is a kind of the market relations between two subjects with certain pluses and minuses for both persons.
Nuances of franchizing
Franchizing extends to all spheres of business. For example, on the system of franchizing also the company on production of the software, and a stall of fast food can work. Opening of business on a franchize is so popular because buyer (scientifically - the franchisee) buys not only the right to be called a name of the well-known brand, but also the system of business. In this regard, ready business on a franchize has a number of advantages:
- the franchisee gets access to the system ground business;
- the franchisee reserves the right to legal and economic independence, that is, receives own business;
- risks when opening the business on a franchize are reduced to a minimum;
- at the time of opening the franchisee will already have a certain circle of consumers, as the franchiser the known companies act;
- the franchiser is interested in profitability of the franchisee therefore at any problems, he acts as elder brother, always ready to come to the rescue;
- minimum of costs of promotion – as we already spoke, most often the franchiser is the promoted company, and you will not need to spend money and time to bring the business to recognition;
- training – most of decent franchisers provide training of the franchisee, providing them access to the knowledge base;
- resources – you will not need to spend months and years to find the most favorable supplier, the franchiser provides you the resources for deliveries.
All this sounds very lovely, but this business has also undercurrents:
- restrictions – some franchisers will control all your business, up to color of cloths on tables;
- resources – we already spoke about suppliers, however franchisers can oblige to buy you raw materials at the unprofitable prices from the suppliers;
- contributions – franchisees are obliged to make contributions to market researches and the advertizing companies even if it especially and is not necessary to them;
- exit from business – if you decided to finish franchizing and to open the matter in the same sphere, you can face point in the contract which puts restrictions for terms and the territory in opening of the business not to compete with the former franchiser.
The ideas for franchizing
Nevertheless, franchizing is the easiest way to become the businessman, and franchizes for small business are most popular. Let's look what are most acceptable business of the idea of franchizes for beginners:
- franchize of network of car washes;
- franchize of network of optics;
- franchize of salons of jewelry;
- franchize of the company on bleaching of teeth;
- franchize of the Thai day spa;
- franchize of children's hairdressing salon;
- franchize of the realtor company;
- franchize of network of bakeries bakeries;
- franchize of ice cream;
- franchize of fast food restaurants.
Business on a franchize attracts simplicity, well, and about points written by a small print in contracts, franchisees learn already then. The big companies whose franchisees a huge number of businessmen dreams to become, have the whole headquarters of lawyers who are engaged in drawing up the most favorable to franchisers in contracts. To avoid akh later, be not too lazy to show the contract to the expert in advance.