What is the franchise?

Franchiser is the owner of a company that allows another party called a franchisee to run a branch of its company while retaining exclusive ownership of IT rights and trademarks. Through the business model called Franzis, the company owner allows franchise to use the name, brand and related elements of their business in exchange for a fee and part of the gross sale of income. In most cases, this is both sides for both sides. If the franchise successfully runs its branch of the company, then he and the franchise benefit from increased brand recognition and greater customer loyalty. For franchises, this can also lead to the expansion of society, because more people are trying to become franchises and establish their own business branch. It provides him with access to risk capital without having to give up control of business through an acquisition by another company. With the use of dollars he receives franchise fees, the franchise is able to sell more franchise - both for domestic and internationalRemoves - quite quickly. Building on the tested brand and the replication formula drastically reduces its risk.

Franchise is an attractive choice for a person who wants to invest in a company, but may not have time or money to develop trademarks and infrastructure to establish his own company. This allows him to supervise the branch of the existing business by using the already established brand. Another incentive is that most franchises require a relatively small investment and some require only a few thousand US dollars (USD) in the initial franchise costs.

Usually the franchisee closes with the franchise period, perhaps from five to 30 years. Franchiser supports the investor and the brand by the franchise will be available to train, advertising and other services to help increase sales. If it invests the required franchise fee, the franchise can operate several branches of the company. But should you be a towerThe house is most likely to have serious consequences if it soon cancels its franchise agreement. Although franchises are considered to be temporary commercial investments that include only the rental or leasing of the brand rather than its ownership, the early termination of such an agreement is considered to be a breach of the contract.

Franchise Fuses Model best for businesses that have a solid history of profitability and are easily copied. The US has led the world in the number of franchises since the launch of fast food franchise in the 1930s. At the beginning of the 21st century, the franchise model was used in almost 100 industries and generated Mood playing $ 1 trillion on sale every year through more than 700,000 devices. While the fast food restaurant continues to lead among the main franchises in the US, other types of franchise placed on top include mixed goods, hotels and cleaning society.