Franchise Business
A franchise business is owned by an individual or an entrepreneur, who is providing a service or product marked by the corporation which ensures to provide assistance in every aspect of the business, and in return of a flat fees along with fees based on profit or sales.
Buying a franchise business can be a great initiative for a future entrepreneur who doesn’t want to start business from scratch.
Typically, a franchise business is a license which is acquired by an individual or an entrepreneur. This gives him access to business proprietary knowledge, trademark, and processes to allow the party to sell the product or services provided to him under the business name. For this access, the franchisee usually pay an initial start-up and annual license fees.
Franchise opportunities allows people to be their own boss. It provides a ready-made business model, along with guidance, training, and support. Now a days, franchise business is flourishing very well. However, every small or big investment comes with its pros and cons.
Advantages of Franchise Business
- A franchise business provides a vast customer base from the starting phase. Because, a fresh and small business takes many years to get establish and earn a good customer base.
- A franchise business provides a constant access to qualified and trained staff. As well as a good support for the business. So, for the support and assistance you don’t need to look for any external support or guidance.
- Some franchise even offer national advertising campaigns. In addition to this, offer marketing strategies in a harmonious way with the television and radio advertising.
- Franchise Business are usually having a well trained staff. When they are in contact with established recruiting and training programs to attract and retain the best talent.
- For a franchise business it is easy to get the financial support, as the numerous franchisers provide finance help as well.
Disadvantages of Franchise Business
- The initial fees of many franchise opportunities range from 10 lakhs to 40 lakhs. Whereas, in some cases it might be more or less as well.
- The franchise business owner usually requires to pay on going royalties and profit percentage from the business as well.
- Franchisees are required to disclose their financial information and confirm the standard operating procedures and policies of the franchiser. In other words, you can’t be an innovator or implement your creativity in the final products of franchise business.
- To maintain the quality of the final product, most franchises insist to purchase raw material from them or their assigned supplier. Therefore, often it found out that the materials are provided with much higher value than what it would be sold from elsewhere.
Conclusion:
Running a franchise requires serious and thorough research while keeping in mind the number of factors. This could be details about the company, companies franchise business policy, location to set up the business, market demand and availability, etc. Even a good product and location doesn’t assure the success of business or earn a great profit. So, a proper research and expert advice is essential before getting into the franchise business and choosing the appropriate brand to associate with. However, opting for a franchise business would be a safe option instead of going for a new business completely.
However, there are a great variety of options available for the franchise business. In spite of that, new business seeker always be in a dilemma of what to choose and which could be a profitable business. In order to this scenario, Business Saathi is their to guide and choose the best franchise opportunity and head towards a good startup business. A business saathi assistance is there to provide you a number of franchise opportunities available in different sectors. The options which could be a profitable option for your business and suits the location as well.
If you are looking for good business opportunities whether you are experienced or a beginner in the market. Always feel free to contact us for the assistance in minimum expense and from a reliable source.