Franchising 101- What You Absolutely Need to Know

Franchising has made the world look really small. The well known flavors are now not just restricted to a single town or city but can be enjoyed world wide. Otherwise it would only be a dream for somebody in Asia to wear the fashion of Europe, for the West to have delectable food of the East etc. Globally as well as domestically the system of franchising has something good for everyone.

Franchising basically is the taking of franchisee- the authority or rights to sell the products of some company. Most often it is only those companies who have an outstanding name in the market that go for franchisee outlets. Like a tree expands and grows through its branches that also bear fruits, so do the renowned companies enhance their business (sales) through franchising. Franchising gives them a good opportunity to explore every small town along with overseas markets.

The process to take a franchisee is simple. All one needs to have is the required security amount to purchase the particular franchisee and a good place with an adequate business plan. The amount so taken by the company is for a fixed tenure after which it needs to be revived in order to continue to sale the company's product. This security amount varies with the kind (food, clothes, electronics?) and the market value or the goodwill of the company. is for a fixed tenure after which it needs to be revived. Escalating goodwill of a company entails a surge in the figures to purchase its franchisee. The companies besides the amount are also very particular and cautious about the area and size of the workplace to open their franchisee outlet. While handing over their franchisee to someone nationally or internationally the franchisors (parent company) educate him of their product, terms and conditions, policies and style of working. Most often these companies also give certain crucial tips to prop up the sales of their product. Weekly or bi-weekly advertisements, hoardings and the like are some of the widely adopted measures for it. Once a company sells it franchisee to someone then it is solely the onus and freewill of the entrepreneur regarding the methods he takes to promote his sales. However the prices of all articles are set by the parent company are not subject to modification by the franchisee.

Franchisee business has more or less covered all areas of human needs. Be it food (restaurants etc.), clothes, jewellery, footwear, bags, makeup kits, electronics?franchising is meant for all. It is at individual's discretion to decide which franchisee he wants to go for. This can be fairly decided by a vigilant market survey and an assessment of the standard and tastes of people in that area. For instance it will not be judicious to open a top brand's outlet of expensive clothes in a suburb region where people want to spend bare minimum on their attire. So the kind of outlet to open, in other words franchisee to take is directly proportional to the needs and status of the consumers.

All the franchisees have their suppliers fixed. The suppliers have to arrange to get the material from the parent company and pass it on to every franchisee store that is linked to it.

The 'sale' season is at volition of the franchisee. But the supplier as well as the parent company should be informed before. The prices during the sales season are reduced to half or less than that in order to clear the stock which gets accumulated and is without any serial no.(like there might be just one size or color left of a shirt, trouser etc.). Usually the franchisees do this in order to recover their money and make place for the new stock.

Thus all in all franchising is a good business that is beneficial not just for the one who has taken the franchisee but also for the consumers who get to enjoy the best of everything in their respective town, city or state.

Mansi aggarwal writes about franchising topics.

---

Quality Controls for Franchising Companies Sample Outline

Quality control in franchising companies is paramount and all franchising... Read More

Small Business Vendors; Getting the Best Service

If you are a small business you know that you... Read More

Are You Making These Mistakes In Your Business?

You've probably heard the statistic that 95% of small businesses... Read More

Leverage The Power of Publicity For Your Small Business

Your business is only as good as the number of... Read More

Never Burn a Bridge

Why should you always maintain a good report with a... Read More

The Skills Gap: It Pays to Use Experts

By outsourcing to skilled professionals you'll be able to grow... Read More

The Role of the Business Model and Strategy for Business

People will always stress that having a well researched business... Read More

Is This The Way Its Always Been Done?

Let's face it, we all tend to get stuck in... Read More

How To Select a Franchise

Here are some useful tips on how to select a... Read More

Business Pain Defined

Every company has business pain, but the pain does not... Read More

How to Start a Carpet Cleaning Company

Opening a carpet cleaning business is a great way to... Read More

Real World Accounting for Small Business Owners

If you're like me, you love accounting. It's so fascinating... Read More

Pressure Washing Heavy Equipment

One of the best ways to make money in the... Read More

Eight Key Steps to Selling Your Business and Cashing In

This year, some 700,000 American businesses will be sold. Most... Read More

Small Business Marketing Secrets: Look Like Sizzle, Be The Steak

You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More

How to Start a Paper Shredding Business

Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More

More Business Card Marketing

If you are worried about how many different business cards... Read More

Taking Stock

Back when I owned an inventory-based business, one of my... Read More

Buying a Franchise

Buying a franchise is not for everyone. This guide will... Read More

Are You Running Your Business or Is Your Business Running You?

Being a small or home-based business owner can be loads... Read More

Looking for a New Office Chair?

Perhaps you are building a new home office or you... Read More

Business Checks are an Added Cost to Your Small Business - Try Making Them Yourself!

Starting and managing a small business is no fun chore,... Read More

Top 10 Record Keeping Mistakes Business Owners Make (and How To Avoid Them)

If you interviewed business owners of failed businesses, a majority... Read More

Where Can People Find Information About Starting A Business?

Approximately 200,000 new businesses are started each year. More people... Read More

Combating Over Regulation of Small Business

Many small businesses do quite well due to the blood,... Read More

Launching your Business with a Chamber of Commerce

Why are Chambers a good launching pad?Chambers provide you with... Read More

Is Brick and Mortar A Passing Fad?

Q: Is the online world the best place to sell... Read More

Business Owners - Do You Actually Own a Job?

How many hours do you work a week? When was... Read More

Debt Collection Techniques

Here are some sound debt collection techniques that can be... Read More

Building A Business That Works For You

Before you want to build your business, you need to... Read More

Three Small Business Secrets to Getting More Billable Time

As small business owners we're in business to make money... Read More

Street Wars Between Mobile Car Washers and Mobile Auto Detailers

There is much competition in the mobile auto detailing business.... Read More

Making Direct Mail Work for Small Businesses

If you own a small business, then you know the... Read More