Franchise Business Opportunities
Choosing to own a franchise may be the ideal path for you. Opening a franchise allows you to be in control of your own destiny while retaining the security of a support structure from the franchisor. Now may be the time to jump off the corporate ladder in search of job security and control over your career and life. Franchising has grown in recent years far beyond the traditional auto dealership and fast-food outlets to almost every good or service imaginable. Here at FrachiseMBA, we have researched a wide variety of franchise opportunities to help you find the one that will suit you best.
Franchise ownership gives those people who lack business experience the chance to operate and own a business with a high probability of success. Franchising is the most successful marketing concept ever created, says trend tracker John Naisbitt. According to Echo M. Garret at the International Franchise Association a new franchise opens up somewhere in the United States every 8 minutes and somewhere in the world every six-and-a-half minutes. Franchises currently account for more than 50 percent of retail sales. One International Franchise Association spokesperson says that franchising will become the dominant form of retail sales in most of the developed countries around the world.
What is Franchising?
In franchising, semi-independent business owners (franchisees) pay fees and royalties to a parent company (franchisor) in return for the right to sell its products or services and often to use its business format and system. Franchisees do not establish their own autonomous businesses; instead they buy a success package from the franchisor, who shows them how to use it. Franchisees, unlike independent business owners, do not have the freedom to change the way they run their business. The secret for most franchises is to follow the plan and formula every day. Standardization lies at the core of franchisings success as a method of distribution. The result: hamburgers that taste as good in California as in Hong Kong.
Types of Franchising
- Trade name franchising involves a brand name such as True Value Hardware. The franchisee buys the right to become identified with the franchisors trade name without distributing particular products exclusively under the manufacturers name.
- Product distribution franchising involves licensing the franchise to sell specific products under the manufacturers brand name and trademark through a selective, limited distribution network. This system is commonly used to market soft drinks (Pepsi, Coca Cola), automobiles (Chrysler), gasoline products (Exxon, Texaco), bicycles, appliances, cosmetics and other products.
- Business format franchising involves providing the franchisee with a complete business format, including a license for a trade name, the products or services to be sold, the physical plant, the method of operation, a marketing strategy, a quality control process, a two-way communication system. The franchisee purchases the right to use all the elements of a fully integrated business operation. This is most rapidly growing of all types of franchising and is common among fast-food restaurants (McDonalds, Starbucks), hotels, car rental agencies and many others.
Benefits of Franchise Ownership
As a franchisee you would have the opportunity to own a small business relatively quick, and because of the identification with an established product and brand name a franchise often reaches the break-even point faster than an independent business would. You would also benefit from the franchisors business experience as franchisor has already worked out most of the kinks in the system. You have the chance to be in business for yourself but not by yourself.
If you have earned experience in your corporate career look for a franchise where you can apply that experience. As a prospective franchisee thoroughly research potential franchise opportunities to find a franchise that is a good match for your personality, experience, likes, and dislikes.Investigate before investing in a franchise.
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