In the early years of franchising, when the concept was just being developed, companies sold licenses and took licensing fees when they granted a local businessperson the right to sell its products. Today, licensing has a much different meaning than franchising. Companies, like soft drink bottlers and distributors, that only license products or services today [...]
Thinking of starting a business? You may have been suggested to consider franchising. This is a type of business opportunity where you can sell or offer the products or services of an established company under the same set up. A good example of this is the food company McDonalds, whose franchise allows any interested investor [...]
As you can see, there is a wide variety of franchise opportunities, industries, brands, and agreements. And there is a wide variety of people who become franchisees. Some franchisees want independence. Others like the security of being connected to an established corporation that provides training and backup. Still others just like to grow a business [...]
Quite simply, franchising diminishes risk. Established brands have credibility with consumers. Nationwide chains have brand awareness and visibility that has sometimes taken years to develop. Established business and operating systems help franchisees hit the ground running. And federal, state, and International Franchise Association (IFA) regulations ensure that franchisors are legitimate and honourable. All of these [...]
When you find any franchise opportunities and buy into a franchise system you sign a franchise agreement that spells out precisely what you are buying. You could be buying one franchise store or possibly the right to build several store locations. You also may be looking to buy the rights to own all the stores [...]