Starting a franchise is not as tedious as starting your business from the scratch. Franchisor often will help you with ideas that have helped them in the past and are so sure to provide you with methodologies that will help you earn more profit.
Purchasing a franchise demands that you have a prerequisite knowledge of what to know when going into it.
Here are 7 Things you need to know about franchise business.
1. Franchiser- The franchiser is the owner of a franchise. He or she owns the business and had gone through all stress there is in the business to understand the risk and profitability of new entrants.
2. Franchise- The business itself. It is the brand that franchisees are purchasing. Examples of franchise are Shoprite, McDonalds, KFC, Mr Biggs etc.
- Getting a franchise means you are buying all that worked for the brand you are willing to trade under. When buying a franchise, the franchisor will fully enable you for operation by giving you all methodologies that will ensure your smooth running.
4.You don’t just buy the methodologies alone. Franchisor also will enable you by selling off the trademarks, logo and major means of identification with the franchise for your use.
5.Buying a franchise might involve you paying some certain amount of cash periodically. This money is meant to cover the cost of your operation under that franchise.
6. Franchisee often will also benefit from nationwide adverts made by the franchisor.
7. Purchasing a franchise often opens you to a wider operational base such as the franchisor also enjoyed.