The following are some major advantages that can be achieved by franchising:
1. Well-known brand.
2. Support for the company.
3. Assistance in funding.
4. Planning your business.
5. Implementation of the procurement of goods at reasonable price.
6. Assistance in choosing a site.
7. Help in creating interior.
8. Reduce risk of failure.
9. Counseling for the duration of activities.
Of the 10 new firms in the small business during the first 5 years is only one, the others closed their activities. As for franchising, it is the 10 new firm’s remains 9, but bankruptcy is just one.
In fact, buy a franchise – is to buy a professional consultant, who has a strong interest in the fact that your business is developing successfully.
Market franchising in some country began to form slightly more than 10 years ago. It is clear that the first owners of the franchises are foreign companies. They were well-known fast-food company, selling clothing, gas, etc. But over time, began to emerge and domestic brands.
Today in our market there are about 300 franchise companies and more than 3000 franchisees. Among them, about half of firms engaged in trade, others work in the area of catering and service business.
Buyers prefer to some country franchise companies. Foreign brands also sold, but the leaders are our brands.
In all countries have long known that lend to potential franchisees – is more reliable than to lend to the opening of the new company. In our country’s lending businesses are poorly developed. Perhaps, before those banks are not mature enough, maybe the economy is not ready for this credit.
In this market to any operation should have a serious approach? We must carefully study contracts, learn more information about the owner of the franchise.
This does not mean that potential buyers are being deceived; it is not just all talk. It can realize to not ready business but only the equipment or even non-liquid goods.
Typical signs that you may be deceived – this is too high amount of down payment, and the lack of follow-up assessments.
The value of the franchise affects the scale of business, as well as its industry. For restaurants, for example, this amount will be at least 200 thousand dollars. This includes all costs – for a franchise, repair facilities, equipment, etc.
To open a cleaning company will use about 5-10 thousand dollars. The same need about to start a business related to the provision of repair services.
Related posts: