Franchising - An Easy Way to Set Up Your Own Business Article Written By: The LowTax Group
Franchising is a commercial relationship between the franchisor or the owner of a business and franchisee or a person wishing to use the identification and idea of the business. The franchisor grants legal rights to the franchisee to market their goods or services. What are the features of the franchise? 1. It is often limited to a specified territory 2. Franchisor provides support to the franchisee in selecting the location, in advertising, in providing initial training and in marketing etc. 3. It is of several types including business format franchise, product franchise and manufacturing franchise. Accountancy franchise is gaining a lot of popularity. Is franchising really beneficial? It is beneficial both to the franchisors and franchisees. Franchisee
The risk of losses is reduced when you go for a business idea that has already succeeded. The advertising charges are decreased because the brand name is already popular. The franchisor provides support in the initial stages. Other franchisees in other areas will share ideas. Getting loans from banks is easier. Accountancy franchise is very useful to business owners because they can focus fully on the running and development of their business.
Franchisors’ business will expand rapidly. The investment for business expansion is very low when compared to developing chain stores. Multiple location of a business helps in gaining an edge over competitors. The brand name recognition increases giving an advantage over competitive companies. Franchisors will earn extra incomes like franchise fees and franchise royalty fees etc.
Franchising is a golden opportunity both for the franchisor and the franchisee to a run business successfully and to earn profit.