What are franchises?
Franzzy
, also known as chain stores, are businesses operated on a special arrangement. The franchises are moderated industries that are governed by a specified business model that includes the name, picture and a set of support services. In exchange for a specified price and a monthly installment of license fees, a franchise who owns the company's trademark, licensed the brand to someone. The buyer then opens the company and operates it, but franchise always belongs to the original creator. Examples of successful franchises include Gold's Gym® and Dunkin 'Donuts®. For someone who considers franchise to be business investments, there are many advantages and disadvantages that should be in mind.
The main advantage of the franchise is that the busy businesses already have proven results of success. For example, McDonald's opening does not require any market research, as the trademark owner will provide franchises all the necessary training and support. This includes selection of site, help with leasing and even business mentoring. FranchiseThey are a great choice for people who know little about business ownership and want to start as soon as possible. They also carry a powerful image that helps push business from the country faster than the same business without a famous trademark.
On the other hand, franchises represent some disadvantages. They are expensive for starters. Settings can run over $ 50,000 in the US and the franchise will also take a good monthly percentage of earnings. Because franchises must maintain the image of the company, new business owners often have to spend large amounts of money to meet the appearance of space, uniform design and even interior adaptation of the place. Some franchises require periodic updates or reforms that the franchise must pay.
Another disadvantage Franchises is a loss of control. The franchisee has little freedom of choice about how to do business, because the changes must be approved by the trademark owner. Many haveThe franchises complains that they feel more like employees than as entrepreneurs. The franchises can be great opportunities for people who are considering their own business and looking for support to start, but as with everything it is good to explore all available options before the decision.