Franchise business: how profitable is it, how to open

The essence of a franchise business in simple wordsA franchise is a type of contract, also known as franchising or commercial concession. Under its terms, one party (the franchisor) grants the other (the franchisee) the right to engage in business activities under its trademark.

In addition to using someone else’s brand, the purchaser of such a concession can receive ready-made technologies, recipes, Franchise business raw material supply channels and product sales. In a word, a franchise is a well-established business model that anyone can join. Perhaps this is the easiest option for starting your own business from scratch.

t’s illustrate how a franchise works in business

using a specific example, in simple terms. So, an entrepreneur plans to open a car wash, but wants to reduce his risks afghanistan phone number data since he has little understanding of the specifics of running this business and is afraid that his point will not attract the attention of consumers.

Of course, you can go your own way – organize a car wash under an original name Franchise business and look for clients, proving to them the quality of the services provided. It usually takes several years to promote such a business, and success is by no means guaranteed. However, there is an alternative – buy a franchise from a popular car service network.

If there is agreement,

a franchise agreement is concluded, which specifies the obligations of both parties. As a result, the owner of the outlet receives a well-known brand and general recommendations on running a business, for example Webinars are becoming increasingly popular and are a great way to what equipment to install, what consumables to use, how to design the establishment, what pricing policy to adhere to, etc. In exchange, the franchisee is obliged to make deductions to the owner of the trademark.

Types of franchises

Franchise classification is based on ja phone number various characteristics: the scope of commercial activity, the number of points in the partner network and, most importantly, the nature of the contractual relationship between the franchisee and the franchisor.

According to the type of business, franchises are divided into product, production and service.