Archive for August, 2010

Franchising Advantages and Disadvantages

Are you curious in going further into understanding the advantages and disadvantages of handling a business in franchising? In this article, it will discuss the specific benefits of the pros and cons of franchising.  –in my own words

Article:

If you want to start your own business, buying a franchise is the best way to go about it. It helps in getting some quick success, without having too much business knowledge or business experience.

Advantages of buying a franchise

  • The Federal Government keeps the Franchiser business tightly regulated.
  • Franchisors will have a genuine interest in your success.
  • The franchisor takes care of the marketplace review and determines the system to be successful.
  • The advertisement and marketing for the franchise is also done by the franchisor.
  • Franchisor also provides you with the supervision, training and any type of consultation.
  • All the systems are already there for you. These include the managerial, operational and accounting systems. These are already in place for you.
  • Franchisor provides the ongoing research and product development.

Disadvantages of buying a franchise

  • There are the franchiser royalties that you have to pay.
  • The contract also needs to be renewed with the franchiser after certain period of time, usually after a year.
  • The franchiser’s problems also become your problems too.
  • You have to buy the products supplied by the franchiser. You cannot go for the cost effective products available.

The advantages clearly outweigh the disadvantages, but before buying a franchise, you must take a note of these, and then decide whether buying a franchise will be good for you or not.

If you decide to buy a franchise, proper franchise management will lead you to quick and long lasting success. The franchise technology has grown significantly lately. You can use different franchise software, available in market, to make your franchising experience a much better and efficient one. These softwares simplify the nature of running the franchisor business model. The main features, good franchise software provides are data collection, corporate communications, administration, new store management, and marketing management, thus making your life easy.

Netsolace provides customized franchise management software and Franchise Software Technology solutions to optimize and automate the way your franchise system operates.

Article Source: http://EzineArticles.com/?expert=Ethan_Scot

What is Franchising? Basics of Franchising

What is Franchising? Basics of Franchising

The best way to break down the understanding of Franchising is improving the knowledge of what the basics of Franchising is. Gathering the right information and talking to the right people. You will succeed in Franchising your own business. – My own words.

The rest is an article that I found

In today’s world franchising is playing the biggest role in the entrepreneurial zone. When one thinks about franchising, food franchises like KFC and McDonald’s come to mind. But franchising is not just about foods. These days, where ever you go, you will find some business which is a part of some franchise network. In this article, I will help you explore the basics of franchising.

Franchising is a system, in which a business can expand. It helps in distributing the goods and services. It also helps in operating a business under a popular brand name. A franchisor or a business owner licenses its trade name (the brand) and its business methods (the way it operates) to a franchisee, who may be a person or a group of people. The franchisee has to agree with the franchise agreement.

The franchisor provides the support needed by the franchisee. The franchisee has to pay some initial fee and also a royalty, so that it could use the brand name and the business methods of that franchise.

Buying a franchise normally is a faster way to succeed as compared to starting your own business from scratch. But before starting, you should keep the following in mind:

  1. You will have to work hard to make it successful. Getting to work under a popular brand and with proven successful business models does not guarantee your success.
  2. If you think that buying a franchise will make you rich over night, you are thinking wrong. Not all franchises will be successful.
  3. You must have a good interest in the franchise you have bought. If you get bored with it later on, it will fail.

If you do franchising the right way and do proper franchise management, you will be successful, and your business will flourish. The franchise technology has grown significantly lately. You can use different softwares, available in market, to make your experience a much better and efficient one. These softwares simplify the nature of running the franchisor business model. The main features, good franchise software provides are data collection, corporate communications, administration, new store management, and marketing management, thus making your life easy.

Netsolace provides customized franchise management software and Franchise Software Technology solutions to optimize and automate the way your franchise system operates.

Article Source: http://EzineArticles.com/?expert=Ethan_Scot

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