Friday, July 19, 2013

All About Franchising in a Nut Shell

All About Franchising in a Nut Shell

By Jamiee Parker

In simple terms, a corporation creates a franchise expansion system. Then a small business entity or individual enters into an agreement with the franchiser to become a franchisee. Typically, the franchisee obtains the use of the franchiser's trademarks and logos and broad-based market. The legal agreement protects everyone's interests. The franchisee pays an initial franchise fee then a royalty payment each month from then on.

Franchising is now an established business option. The use franchisees helps some large corporations achieve diversification. Franchising is increasingly popular in many different industries. With franchises, a business can create new business units. As per a recent survey, approximately one-third of total retail sales are made via franchise stores.

Owning a successful food or other franchise can be very comforting. However, potential franchisees must exercise caution when opening a franchise store in a new market. Sometimes the outcome does not meet expectations. As a business owner you can also consider franchising. For example, restaurant owners who want to expand their business can create franchise opportunities. Franchises would provide the solution to a shortage of management personnel or lack of financial resources to operate a chain of restaurants.

See the rest of the article on Monday, July 22.

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