Business or a brand which has loyal customers and are looking to expand their business in multiple locations can opt for Franchise.Most Entrepreneurs turn to franchising because it allows them to expand without the debt of cost equity.When you buy a franchise, you are buying an established idea or brand that has already proved to be successful. It is shown that franchisees stand a much better chance of success than starting own independent businessesAdvantages of investing in franchise
Franchising can be broadly classified into two types.Master Franchise and Individual Franchise
Master franchise is a franchising contract in which the master franchisor have the authority to give control of the franchising activities to an individual or an organization in a specified territory is known as master franchising and , the person or organization who accepts the franchising contract are known as "master franchisee".In contrast an individual franchisee cannot have the authority to give franchising contract to any business individual or organization and are only responsible for carrying out the specific commercial activities that are mentioned in the contract.
In a Franchising business, the franchisor gives a growth plan for working together, continuous guidance, frameworks and help in return for occasional installment of charges and additional purchases.
Purchasing a franchise can be a suitable option in contrast to stepping into new business. Recorded underneath are a few focal points of purchasing a franchise.
- Franchise offers the freedom of private company ownership filled with the advantages of a major business arrangements.
- You don't really require business experience to run and maintain franchise. Franchisors for the most part give necessary training to work along with their plan of action.
- Franchises have a higher pace of accomplishment than new companies.
- You may think that it's simpler to invest money for a franchise. It might cost less to purchase a franchise than to invest it into a new business which is of a similar type.
- Franchises frequently have a built up notoriety and picture, demonstrated administration and work rehearses, access to continuous help.