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What The Franchise Is?
An Introduction of Franchise and its
Eco Info Service.
What is franchising?
A franchising operation is a contractual relationship between the franchisor and franchisee in which the franchisor offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade name, format and/or procedure owned or controlled by the franchisor, and in which the franchisee has or will make a substantial capital investment in his business from his own resources.
Types of Franchise
3 main types of franchise:
Product distribution franchise;
Business format franchise; and
Proven marketing concept and customer base
The use of an established, nation-wide brand.
May help alleviate managerial weaknesses.
The franchisor provides a range of operating services including site selection, bulk purchasing of equipment, and inventory.
Reduce Risk of Business Failure
Greater chance of success
Myths of Franchising
Safest way to go
Less money to open
Bigger franchise organization, more successful
All are the same
No need for hands-on management
Anyone can be successful
Cheapest way to get into business
All problems will be solved
Elements to look for in a franchise relationship:
Give and take
Initial start up average start-up cost is 30 Thousand INR
Then monthly payments - a percentage of sales 40%
Franchisors may charge high prices for their supplies this affects profit.
An entrepreneur whose power is limited by a contractual agreement with a franchisor
The party in the franchise contract that specifies the methods to be followed and the terms to be met by the other party
Franchise A Proven Formula for Success
Like A Marriage Contract
Profit --A Thriving Opportunity to Avail