Franchising is one of the inclinations of today’s modern entrepreneur. Franchising creates imagination and innovation. This is considered a good investment. Many have succeeded in franchising business. For many, this is the best business ever! Aspiring and professional business people say that franchising is the best business. Franchising, in the first place, is said to be a lucrative form of business. Low capital, high returns. A franchisee is called to the person who buys sand acquires the rights, while franchiser, on the other hand, the one who sells the right.
Franchising, basically, has two major categories or divisions:
- Products. This can be done through retailing and wholesaling of food and non-food items.
- Services. This refers to the services being rendered by a particular establishment.
Franchising helps people to operate and manage the business well through its carefully studied procedures and system. It bestows a lot of advantages that make business and life easy. Let’s find out some benefits associated with franchising.
Advantage no. 1: Expansion and Development Possibilities
Been tired of managing a traditional business? Franchising does it better. A franchise business gives wider opportunities and substantial growth. It lends a hand to entrepreneurs in setting up new great locations rather than being restricted in your own capital.
Advantage no. 2: Rate of Return
When operating a franchise business, the franchisee would definitely earn much higher than from a conventional business.
Advantage no. 3: Visibility and Branding
Visibility and popularity are emphasized in franchising. You don’t only operate in many locations, but also you build and represent the name of the franchising company.
In addition, there are four various types of franchising available:
- Single Franchise. This referred to as the entry-level and the most ordinary type of franchise wherein the franchisee is given the rights to operate a single unit franchise in a certain location. This type of franchise can be setup at your home or choose a strategic location. Usually, it is the franchisee that operates the business.
- Multi Unit Franchise. This is done when the franchisee manages and operates a multiple franchise units.
- Area Developing Franchising. The franchisee has the right to own a selected area wherein he/she can open and operate a number of units.
- Master Franchising. This is also called as regional or master developer. Master franchiser does develop the business in a particular location or region.
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