The Fundamentals Of Franchising

A.  Franchising is a business model that blends the finest things of sole proprietorship and the corporate market. It is a hybrid model that bridges the gap between working for yourself as an owner and working for some other authority as an employee. B.  Franchising is not an industry. It is a means of doing business that is applicable in any arena. Nowadays there are 3000 franchise brands that are present in 250 varied lines of business only in India. Franchising has got two major forms - product or trade name franchising. A franchiser has got the right to a trademark or name and sells or licenses the right to utilize that name or trademark. C.  Business format franchising has got a more complicated relationship in which the franchiser facilitates the franchisees with a wide range of services and support. The franchisees sign an agreement to do the operations in accordance with specific rules that have been laid down by the franchiser. D.  Franchising is a technique of properly distributing the services or products. There are two levels of people that are there in a franchisee system - one is the franchiser who lends his trade name or trademark and the other is a franchisee who actually pays a royalty and also a fee for doing the business under the name of the franchiser and the system. E.  Franchising is a great, collective team effort. A great deal of franchisees have to operate a profitable franchise unit for a longer duration of time. The success of a brand relies on ongoing partnership between the franchisee and the franchiser. F.  The best appeal for the franchising is the chance for a person to have immense control on their destiny and make their future secured. The franchise model has got a great business opportunity for wealthy persons and investors who purchase several units at once or purchase the rights to create a geographical area and also make some units in a specified time duration. G.  The area developers, multi-unit owners and representatives are a part of the developing trend in franchising and have about 50 percent of the franchised units in America nowadays. There are many multi brand franchisees on the rise also. H.  The basic reasons for these highly successful franchisees is to get extra brands. They want new brand to smoothen the ups and downs of the business. Franchisors combine many varied brands in one roof and provide discounts to the present franchisees who take a second brand.