You want to start a business but have limited
business experience. Buying a franchise may sound
appealing since the advertisements for franchises
indicate that the franchisor will train you to operate the
business. Before purchasing a franchise, however, there
are many things to consider.
A franchise is a legal and commercial
relationship between the owner (franchisor) of a known
trademark, trade name or logo and an entity who wants
to use that business identity (franchisee). The franchisee
pays a fee to use the franchisor’s name for a
predetermined amount of time. The franchisee also
agrees to operate the business according to the directions
of the franchisor.
Advantages of Buying a Franchise
A franchise may help an individual with limited
business management skills reduce the risk of business
failure, but success is not guaranteed. Ongoing training
helps the franchisee develop business skills. As a general
rule, a franchise business provides:
* risk reduction,
* ready to use operation,
* operation manuals,
* standardized products,
* collective buying power,
* supervision and consulting,
* cooperative advertising programs,
* uniform packaging,
* ongoing research, development and training,
* financial assistance,
* site selection assistance, and
* sales and marketing assistance.
Company Videos: Franchises Braxton