The word franchise It has multiple uses, although it must be said that all meanings are related. It is, for example, the permission that gives someone the rights to exploit a product, a brand or one activity . This concession can be given by a company to one or more individuals In a specific area.
When acquiring the franchise, the person can exploit it commercially but respecting a series of terms and conditions. In this way, you benefit from having a business that is usually recognized by consumers. Franchises retain the same quality of products and services in all their branches. Fast food shop McDonald's It is one of the best known franchises and guarantees that the customer will have the same type of food in any of its restaurants worldwide.
The franchisor is the one who grants the franchise to the franchisee. For this, you authorize it to use the license of a brand and its business methods in exchange for a royalty or of one periodic rate .
The teams of the NBA , for example, are franchises. Unlike the clubs that exist in most of the planet, these teams are brands whose owner can sell them or move them from one city to another. The goal of an NBA franchise, therefore, is to obtain sporting success, but also economic benefits.
On the other hand, a franchise is the exception with which someone benefits by avoiding the payment of rights corresponding to the products that enter or take out of the country, or for the usufruct of a certain service of public reach. Franchise is also known as the minimum cost of damage that the insurer agrees to cover when signing a contract safe .
Keys to choose the best franchise
When you want to start a business or draft Choosing the right name to get a good promotion of it and therefore the success in such an undertaking is essential. There are many tips that can be useful for such action, and here are some of them.
Before starting, keep in mind that investment is a priority when setting up a company, but so is know look to the future and understand what activity or sector in the market will have a secured space in the commercial world and what brand You can have moderately guaranteed success. For this, it is essential that the entrepreneur be informed in detail and not get caught up in fashion; Having access to market research data is essential to be able to consider a feasible venture.
The possibilities of the entrepreneur when choosing a franchise are many, and with the economic crisis the financing has been made more flexible towards projects that imply a security of success, especially those that are backed by prestigious brands.
In a franchise, the investment it is one of the starting points that must be contemplated and analyzed in detail; It must be adjusted to the needs of the entrepreneur, since it may depend on it to carry out their business plans. In any case, one of the most common advice is to have at least 30% in own resources in order to avoid becoming indebted. On the other hand, the business for the business does not work; It is necessary to be attracted to the sector to be able to collect achievements that go beyond the economic and inspire consumer safety.
The entrepreneur must clearly know the peculiarities of the system; For example, if a store is set up within a chain, the chances of getting ahead are greater when they start being part of an already accredited business, reducing risks. However, it has disadvantages such as the reduction of freedom, since certain rules must be followed at the beginning of the collaboration and the owner of a store does not have the power to make changes, however appropriate he may consider them. Therefore, it is essential to be aware of all the obligations that are acquired, such as payment for royalties, the conditions of assistance, the forecast of results, and everything related to the new venture.
Knowing how to choose the sector and the brand is key to starting at a hurried pace and manifesting irrevocable growth; surely the strongest sectors are those of aesthetics and restoration. The least recommended are those that can ensure temporary success, such as real estate, which in recent years has plummeted.