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franchise business

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A franchise business is a business in which the owners, or franchisers, sell the rights to their business logo and model to third parties, called franchisees. Franchises are an extremely common way of doing business.

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									 FRANCHISE BUSINESS
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A franchise business is a business in which the owners, or franchisers,
sell the rights to their business logo and model to third parties, called
franchisees. Franchises are an extremely common way of doing business. In
fact, it's difficult to drive more than a few blocks in most cities
without seeing a franchise business. Examples of well-known franchise
business models include McDonalds, Subway, UPS, and H & R Block. In the
United States, there are franchise business opportunities available
across a wide variety of industries.To invest in a franchise, the
franchisee must first pay an initial fee for the rights to the business,
training, and the equipment required by that particular franchise.
Thereafter, the franchisee will generally pay the franchise business
owner an ongoing royalty payment, either on a monthly or quarterly basis.
This payment is usually calculated as a percentage of the franchise
operation’s gross sales.After the contract has been signed, the
franchisee will open a replica of the franchise business, under the
direction of the franchiser. The franchisee will not have as much control
over the business as he or she would over their own, but may benefit from
investing in an already-established brand.Generally, the franchiser will
require that the business model stay the same. For example, the
franchiser will require the franchisee to use the uniforms, business
methods, and signs or logos particular to the business itself. The
franchisee should remember that he or she is not just buying the right to
sell the franchisers product, but is buying the right to use the
successful and tested business process. The franchisee will also usually
have to use the same or similar pricing, in order to keep the advertising
streamlined. For example, if you saw an advertisement for $75 tax
preparation from a well-known tax preparation franchise, you would expect
to find this deal in any one of the franchise operations you went into.
Aside from using the business model determined by the franchiser, the
franchisee will otherwise remain an independent owner of the
franchise.While there are many benefits to investing in an already-
successful franchise business model, there are drawbacks as well. As with
any investment you make, you should do your research thoroughly before
you make any franchise purchasing decisions. If you are considering
buying into a franchise, you should contact an experienced franchise
attorney for further assistance..<a
href="http://citiwide.com.au/">CitiWide</a>

http://www.citiwide.com.au/


Loan enquiries   :    1300 732 630

General enquiries:        03 9326 6300

Facsimile        :        (03) 9326 6305

Head Office      :    333 Queensberry Street, North Melbourne, Vic 3051

Mail             :    PO Box 189, North Melbourne, Vic 3051
Email   :   loans@citiwide.com.au

								
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