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What does it take to be a franchisee? How much does it cost? Will it work in my area? These are just a few questions that arise when discussing franchise ownership. Is franchise ownership for you?
Franchising involves a symbiotic relationship between franchisee and franchiser. Franchisees give expansion, extra profit, as well as increased brand recognition. The franchiser gives basic know-how, supply chain, brand name, and ongoing support for the franchisee.
Franchising has become a profitable and strong business system in today’s world. In the world, franchising symbolizes about only a tenth of the total number of the businesses, yet franchises hold nearly 40% of the market sales.
There are lots of types of franchise agreements and they differ on amount of participation that the franchiser will make and the amount of start up capital. There are a variety of franchises, such as those with a retail environment, including a lease and employees, or those that you can work from home. Your investment will vary depending on the type of franchise you like. You can invest in franchises for as little as $20,000.00 up to $1,000,000.00.
Franchising is a valid alternative to independent ventures. The idea of a franchise is that you are able to follow a system of success, and put that system into motion. When investing in a franchise, you will receive a model and training from the franchiser. This guidance will help you get a good start in your new franchise and offer you a plan of attack.
In my opinion Franchising is the best way to go if you are exiting the corporate world and desire your own business. You are provided with an easier start up and direction. It is normally suggested that a franchisee have some basic knowledge & interest in a business he is going into. Starting any business is tough, but with the right passion matched with the right franchise, franchising has been proven to be a great way to get started and move through the start up months with confidence.
During your evaluation period of your new franchise opportunity, look for assistance from a knowledgeable person. Part of your due diligence will be to discuss with current franchise owners. You can speak to them on the pitfalls and benefits of a particular franchise. As a potential franchisee, you will be offered a FDD, which outlines all the workings of the franchise and who is responsible for what. The FDD is a legal document designed to give the potential franchise owner information that will assist them with making an informed decision.
In conclusion, franchising is strong as ever, with good support, a model of success and a natural path for those that are looking for something after their corporate experience. Take a look and see if franchise ownership is for you.
Source by Jerry Cantrell
