Whether you choose to embark on an Affiliate Franchise or the most popular franchise around, Business Format, you will experience several advantages and disadvantages.
As stated before, a franchise is defined as a contractual agreement in which the owner of a business concept gives a businessperson the right to own and operate a business based on that concept.
Advantages of Buying a Franchise (Provided by Black Enterprise: Guide to Starting Your Own Business by Wendy Beech)
Name Recognition – When starting a new business, the biggest challenge is establishing your name. Customers have no idea what your new business is like, or what typed of products or services you provide. When buying a franchise, you are jumping right into an established name with a proven record of success.
Financial Support – There are many ways to obtain the capital necessary to purchase a franchise. You can secure a bank loan, ask family and friends, or contact the Small Business Administration (SBA) about a guaranteed loan.
Site Selection – Some franchises belong in certain locations. A franchisor knows where a hair salon, dessert bar, lawn care service, or tattoo parlor will generate the most sales. Most franchisors will assist you in selecting a site that will work best for your business.
Disadvantages of Buying a Franchise
High Cost – The costs of purchasing a franchise can be very expensive. The costs typically vary according to the type of franchise that you buy. The fee can range from $5,000 to $50,000 or more.
Loss of Control – Once you purchase a franchise, it is required to abide by a set of guidelines set forth by the franchisor and outlined in the franchise agreement.
Share in Problems of the Parent Company – Just as a franchisee experiences the successes of the franchise; he or she also has to bear the failures. Once you have bought into the name, image, products and services, you cannot separate yourself from the parent company when times get hard.
About CODANK Charlotte Web Design
CODANK is a top Charlotte Web Design and Internet Marketing Company located in Charlotte, NC. The company is dedicated to providing a broad range of web design services. CODANK specializes in Search Engine Optimization (SEO), Graphic Design, Online Marketing, and Web Design and Development.
For more information, visit CODANK Charlotte Web Design and Internet Marketing Company at www.codank.com
Showing posts with label franchise. Show all posts
Showing posts with label franchise. Show all posts
Wednesday, March 17, 2010
Tuesday, March 16, 2010
Franchising 101
Choosing to take advantage of a franchise can either be a good or bad idea. Depending on what franchise you decide to invest in, you may run into a few more problems than usual.
Franchises became very popular in the United States in the 1960s, but the concept was born well over 100 years before. A franchise is defined as a contractual agreement in which the owner of a business concept gives a businessperson the right to own and operate a business based on that concept. As a franchisee, you buy the right to sell a trademarked product or service.
All franchisees are required to pay a franchise fee plus start-up costs, ongoing royalty fees, and operating expenses (rent, build-out, inventory, etc.). It is the franchisors responsibility to provide assistance with establishing a location for the franchise and developing the site.
According to Black Enterprise: Guide to Starting Your Own Business by Wendy Beech, all franchises fall into one of the following three categories:
• Product and trade-name franchise – The distribution of a product through a dealer. The franchisee is limited to selling only the products included in this type of arrangement.
• Affiliate or conversion franchise – This franchise is normally used by a group of independent entrepreneurs who operate in a segmented industry. They are not required to use the franchise name in order to conduct business. Most will take on the name as well as their own.
• Business format franchise – This is the most popular and best known type of franchise. A complete package of tools and materials for operating a business is included.
About CODANK Charlotte Web Design
CODANK is a top Charlotte Web Design and Internet Marketing Company located in Charlotte, NC. The company is dedicated to providing a broad range of web design services. CODANK specializes in Search Engine Optimization (SEO), Graphic Design, Online Marketing, and Web Design and Development.
For more information, visit CODANK Charlotte Web Design and Internet Marketing Company at www.codank.com
Franchises became very popular in the United States in the 1960s, but the concept was born well over 100 years before. A franchise is defined as a contractual agreement in which the owner of a business concept gives a businessperson the right to own and operate a business based on that concept. As a franchisee, you buy the right to sell a trademarked product or service.
All franchisees are required to pay a franchise fee plus start-up costs, ongoing royalty fees, and operating expenses (rent, build-out, inventory, etc.). It is the franchisors responsibility to provide assistance with establishing a location for the franchise and developing the site.
According to Black Enterprise: Guide to Starting Your Own Business by Wendy Beech, all franchises fall into one of the following three categories:
• Product and trade-name franchise – The distribution of a product through a dealer. The franchisee is limited to selling only the products included in this type of arrangement.
• Affiliate or conversion franchise – This franchise is normally used by a group of independent entrepreneurs who operate in a segmented industry. They are not required to use the franchise name in order to conduct business. Most will take on the name as well as their own.
• Business format franchise – This is the most popular and best known type of franchise. A complete package of tools and materials for operating a business is included.
About CODANK Charlotte Web Design
CODANK is a top Charlotte Web Design and Internet Marketing Company located in Charlotte, NC. The company is dedicated to providing a broad range of web design services. CODANK specializes in Search Engine Optimization (SEO), Graphic Design, Online Marketing, and Web Design and Development.
For more information, visit CODANK Charlotte Web Design and Internet Marketing Company at www.codank.com
Monday, November 2, 2009
Doing Business: Franchising
Embarking on a new web design company or fast food franchise can be very beneficial if handled in the correct way. There aren’t many to choose from, but the ones that are available should definitely be taken advantage of.
Franchising is defined as a business method that involves licensing of trademarks and methods of doing business. This includes:
Chain store – retail outlets which share a branded and central management
Exclusive right – sell branded merchandise
Media franchise – ownership of the characters and setting of a film, video game, book, etc.
For example, as an iDesign 247 franchisee, an individual is granted the opportunity to market a well-liked brand and service. With a low initial investment, becoming an owner will automatically expose them to a mass group of consumers ready to take advantage of the services in which iDesign 247 offers.
Becoming an iDesign 247, or any other company, is both easy and valuable. You will be granted with the resources, creativity and knowledge of a growing brand. The company should always be available to help you prosper as a business owner.
Below are the top ten (10) franchises of 2009. These companies were the most invested in businesses during the year (out of 500).
Subway
McDonald's
Liberty Tax Service
Sonic Drive-In Restaurants
InterContinental Hotels Group
Ace Hardware Corp.
Pizza Hut
The UPS Store/Mail Boxes Etc.
Circle K
Papa John's Int'l. Inc
Before you choose to become a franchisee, it is best to conduct thorough research. A lot of time, money and patience are endured when dealing with a franchise. Make the correct choice and make it work for you.
About CODANK Charlotte Web Design
CODANK is a top Charlotte Web Design and Internet Marketing Company located in Charlotte, NC. The company is dedicated to providing a broad range of web design services. CODANK specializes in Search Engine Optimization (SEO), Graphic Design, Online Marketing, and Web Design and Development.
For more information, visit CODANK Charlotte Web Design and Internet Marketing Company at www.codank.com
Franchising is defined as a business method that involves licensing of trademarks and methods of doing business. This includes:
Chain store – retail outlets which share a branded and central management
Exclusive right – sell branded merchandise
Media franchise – ownership of the characters and setting of a film, video game, book, etc.
For example, as an iDesign 247 franchisee, an individual is granted the opportunity to market a well-liked brand and service. With a low initial investment, becoming an owner will automatically expose them to a mass group of consumers ready to take advantage of the services in which iDesign 247 offers.
Becoming an iDesign 247, or any other company, is both easy and valuable. You will be granted with the resources, creativity and knowledge of a growing brand. The company should always be available to help you prosper as a business owner.
Below are the top ten (10) franchises of 2009. These companies were the most invested in businesses during the year (out of 500).
Subway
McDonald's
Liberty Tax Service
Sonic Drive-In Restaurants
InterContinental Hotels Group
Ace Hardware Corp.
Pizza Hut
The UPS Store/Mail Boxes Etc.
Circle K
Papa John's Int'l. Inc
Before you choose to become a franchisee, it is best to conduct thorough research. A lot of time, money and patience are endured when dealing with a franchise. Make the correct choice and make it work for you.
About CODANK Charlotte Web Design
CODANK is a top Charlotte Web Design and Internet Marketing Company located in Charlotte, NC. The company is dedicated to providing a broad range of web design services. CODANK specializes in Search Engine Optimization (SEO), Graphic Design, Online Marketing, and Web Design and Development.
For more information, visit CODANK Charlotte Web Design and Internet Marketing Company at www.codank.com
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