Franchising 101- What You Absolutely Need to Know

Franchising has made the world look really small. The well known flavors are now not just restricted to a single town or city but can be enjoyed world wide. Otherwise it would only be a dream for somebody in Asia to wear the fashion of Europe, for the West to have delectable food of the East etc. Globally as well as domestically the system of franchising has something good for everyone.

Franchising basically is the taking of franchisee- the authority or rights to sell the products of some company. Most often it is only those companies who have an outstanding name in the market that go for franchisee outlets. Like a tree expands and grows through its branches that also bear fruits, so do the renowned companies enhance their business (sales) through franchising. Franchising gives them a good opportunity to explore every small town along with overseas markets.

The process to take a franchisee is simple. All one needs to have is the required security amount to purchase the particular franchisee and a good place with an adequate business plan. The amount so taken by the company is for a fixed tenure after which it needs to be revived in order to continue to sale the company's product. This security amount varies with the kind (food, clothes, electronics?) and the market value or the goodwill of the company. is for a fixed tenure after which it needs to be revived. Escalating goodwill of a company entails a surge in the figures to purchase its franchisee. The companies besides the amount are also very particular and cautious about the area and size of the workplace to open their franchisee outlet. While handing over their franchisee to someone nationally or internationally the franchisors (parent company) educate him of their product, terms and conditions, policies and style of working. Most often these companies also give certain crucial tips to prop up the sales of their product. Weekly or bi-weekly advertisements, hoardings and the like are some of the widely adopted measures for it. Once a company sells it franchisee to someone then it is solely the onus and freewill of the entrepreneur regarding the methods he takes to promote his sales. However the prices of all articles are set by the parent company are not subject to modification by the franchisee.

Franchisee business has more or less covered all areas of human needs. Be it food (restaurants etc.), clothes, jewellery, footwear, bags, makeup kits, electronics?franchising is meant for all. It is at individual's discretion to decide which franchisee he wants to go for. This can be fairly decided by a vigilant market survey and an assessment of the standard and tastes of people in that area. For instance it will not be judicious to open a top brand's outlet of expensive clothes in a suburb region where people want to spend bare minimum on their attire. So the kind of outlet to open, in other words franchisee to take is directly proportional to the needs and status of the consumers.

All the franchisees have their suppliers fixed. The suppliers have to arrange to get the material from the parent company and pass it on to every franchisee store that is linked to it.

The 'sale' season is at volition of the franchisee. But the supplier as well as the parent company should be informed before. The prices during the sales season are reduced to half or less than that in order to clear the stock which gets accumulated and is without any serial no.(like there might be just one size or color left of a shirt, trouser etc.). Usually the franchisees do this in order to recover their money and make place for the new stock.

Thus all in all franchising is a good business that is beneficial not just for the one who has taken the franchisee but also for the consumers who get to enjoy the best of everything in their respective town, city or state.

Mansi aggarwal writes about franchising topics.

In The News:

Over $13M handed out to local small businesses  Central Coast Community News

The End -- Fireworks or Fizzle?

Seems as though there are a lot of business closings... Read More

To Buy A Fat Pig

What does buying a fat pig have to do with... Read More

FFP vs. CPFF Contracts

SBIR Corner: FFP vs. CPFF contracts:In the SBIR/STTR world, the... Read More

Do You Make These 7 Deadly Cash Flow Mistakes?

Managing cash flow is every small business owner's most important... Read More

Starting An E-Commerce Business: Baby Steps

Starting your own e-commerce business can be quite the adventure.... Read More

Genius Time? It Matters

I frequently give presentations at small business gatherings, providing me... Read More

13 Steps to Protect Yourself from Your Bank

The success of your business is critically dependent on how... Read More

Small Business Success - It?s a Matter of Confidence

I was floored! I couldn't believe what they were saying!... Read More

The Power of Why: Your Psychological Ally To Marketing Success!

Here's why 'WHY' is such a profit-making marketing trigger."Stop taking... Read More

Entrepreneurs Go Virtual!

With the massive explosion of start-ups and home businesses developing,... Read More

Creating a Paperless Office

When working from home, it is usual to find that... Read More

The Triple A Way to Spark Your Companys Profits

Winning small and home based businesses today must continually shake... Read More

Eight Ways To Improve Your Companys Cash-Flow ? TODAY!

Cash is the lifeblood of any business. As humans need... Read More

Image of Your Franchise Automotive Outlet is So Important

Image of your franchise automotive outlet is so important. Some... Read More

Finance Your Small Business: So Much Money, So Little Time

$37.4 million funded from venture capital today. $86.4 million funded... Read More

Franchise Buyers Lying On Forms

The Federal Trade Commission which governs the franchise industry thru... Read More

Get Approved for a Franchise

Deciding to start your own franchise is just one of... Read More

7 Tips To Improve Your Cash Flow

Cash is King?That is what everyone tells us and it... Read More

Top 10 Rules for Small Business Success

1. TargetYou are not all things to all people. Decide... Read More

What is your Motto?

Company mottos can easily be printed on a business card.Sometimes... Read More

Analyzing Customers in Your Business Plan

The Customer Analysis section of the business plan assesses the... Read More

Using Technology to Manage Customer Loyalty

Don't let your customer satisfaction research initiative collect dust on... Read More

Designing a Franchise Training Program

If you intend to franchise your company you will need... Read More

Small Businesses With Work Trucks; A Warning

If you are a non-operator owner of many work trucks,... Read More

A Small Business Consultant Can Help in Many Ways... But One Thing He Can?t Provide

A consultant must remember that the business belongs to the... Read More