What is Franchising?
The Basics of Franchise Ownership
Maybe you’ve heard the term “franchise” applied to sports or movies, but in business, a franchise is a network of interdependent businesses. The businesses within this network share successful strategies and systems; like the brand name, a method of doing business, and a strong marketing and distribution system.
While there are both pros & cons of franchising, studies show that new franchise business start-ups rarely fail. In fact, it’s as close to a “guarantee of success” as you can get in today’s business world. Because instead of building a business from the ground up, you start with the advantage of a proven system, built-in brand recognition, and an audience. The franchisor has already done the groundwork for you. They’ve figured out what works and what doesn’t and are passing this knowledge on to the franchisee.
This is the power of franchising. It’s the combined, valuable contributions of 2 participants: the franchisor and the franchisee.
In this partnership, the franchisor provides:
the established brand or trademark
a proven operating system
ongoing guidance as the franchisee builds their business
Meanwhile, the franchisee:
pays initial franchise fees & ongoing royalties
is responsible for the daily operation and management of the business
In the franchise industry, we like to say that a franchisee is “in business for yourself, but not by yourself”. I think this covers the fact that the franchisee gets to be their own boss while still gaining the benefits of ongoing support and enhancements to a proven system.
There are tons of options for new business start-ups within the franchise industry that cover many investment levels and industries. If you’d like to learn more about what might work for you, reach out to me.
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