Business franchise Business franchise occupies an important place in the modern economy.In this article we will discuss about the features, advantages and disadvantages of such activities in the form of market relations as a franchise.

First, you need to talk briefly about the concept of franchising.Simply put, it «Rent» trademark . Business franchise regulated by a special agreement between the franchisor (those engaged in the provision of the franchise) and the franchisee (the one who gets the franchise).Recent pay fees to the franchisor for the right to be part of the same system.The most striking example is the global franchise chain of restaurants McDonald's.However Corporation owns only 15% of restaurants in the world.The owners of the remaining parts are distributors.

should be noted that the business of the franchise has many advantages. franchising involves the use of a proven business system .It is also worth noting that the development of the network itself is a good brand advertising, which does not requir

e additional investments.

Franchisee always retain their legal and economic independence , despite the fact that the franchisor has a certain degree of control aimed at improving the efficiency of partners.

should also say that the franchisor does not leave partners face to face with the problems , which may occur at the initial stage of business.In addition, organizations providing franchise partners certainly will warn about possible risks, as well as ways to reduce them.

worth emphasizing opportunity quite well-to-market thanks to business franchise .The fact is that even before the start of a well-known brand can safely count on a certain circle of loyal customers.

Franchisees have access to the knowledge base of the franchisor .Another positive aspect is the low cost of advertising.The fact is that franchisees usually starting out as a part of the well-known network, so at first be enough advertising in the local market.Franchisors are always trying to provide our partners a regular supply of essential products and raw materials.

also need to say that the business of the franchise has a number of drawbacks.First of all, partners are required to follow certain rules and regulations , even in cases where it does not bring the maximum benefit to business.Suppliers may be only those organizations which are assigned by the franchisor, and this leads to the fact that raw materials are often purchased at inflated prices.

In addition, for the franchisee can be installed severe restrictions on going out of business , for example, it can not be allowed to open competing organizations in a particular area for a certain period.Yet sometimes there are situations when a franchise owner decide to close its network.In this case, you will be able to do business just before the end of the period specified in the contract, and then have to think about the beginning of a new business.

To date, the franchise business is considered one of the most common.Entrepreneurs become part of networks, as consumers trust these companies.The reason is a guarantee of the quality of products and services.In addition, very large companies value their reputation .Modern business franchise includes a chain of restaurants, cafes, shops, software support, and more.

Business franchise