To be a franchisee or have an independent business?

An entrepreneur can attain faster growth and synergy by associating his/her capital and business competence with a recognized brand and established business model being offered by Franchiser.
By: Laskil online business portal
 
MUMBAI, India - Dec. 24, 2014 - PRLog -- Grab the Opportunity!

Investments in any business are vulnerable and exposed to multiple uncertainties. An established recipe for successful business enterprise is synergy to be achieved by partnering with someone who can fill in your weakness gap.

I have encountered many businesspersons failing and/or facing financial distress due to sheer lack of experience, weak business model, failure to generate revenues, attaining economies of scale leading to uncompetitive price, customer dissatisfaction, failure to establish brand and goodwill.

An entrepreneur can attain faster growth and synergy by associating his/her capital and business competence with a recognised brand and established business model being offered by Franchisor.

Following are the things to be considered before being a Franchisee:

Background Research:


·         Franchisor's Product or Service demand:

·         Track Record of the franchisor's business:

·         Financial Strength of the Franchisor:

·         The proposed Legal agreement between franchisees and the franchisor

Cost and Fees of Opening a Franchise:

         In franchising model of arrangement, franchisors directly or indirectly collect payments from franchisees for the right so granted to use their brand and to participate in their systems. Typically, franchisees are also required to pay ongoing fees for franchise support, which may be a fixed monthly amount, or calculated as a percentage of turnover.

Analyse your Interest and Scope that what is:

Each business can fulfil different types of needs. If you want freedom and flexibility of hours, then food and some other types of retail may be too demanding of your time – perhaps a service business where you can book your own appointments would be better for you. On the other hand, if you want high visibility, then perhaps retail would be perfect.

You need to analyse what isimportant to you – Independence? Money? Freedom? Flexibility? Growth? Challenge? Variety? People?

Once you are done its time to find franchising opportunities that match your strengths and interest.

It is also essential for the Franchisee to receive competent professional advice from qualified and experienced advisors.

Benefits Of Being a Franchisee:

Lower Overhead Costs:


         Franchisee is able to take advantage of the Franchisor company’s nationwide distribution system when it comes to low-cost bulk purchasing. The franchisee can also depend on its consistent product supply and access to high volumes if he has high sales.

Name Recognition:

         Franchisee gets advantage of being associated with a brand having customer recognition and interest. In addition, the Franchisor usually works towards generating customer interest by continuous marketing and advertising support.

Training and Support:

         Franchisor provides training to Franchisees employees /staff for smooth business operations. This provides a huge benefit to Franchisee, since the Franchisor also provides employee policies and information about the procedures that are key in maintaining smooth business operations. The challenges encountered by you as a new entrepreneur will drastically minimise resulting in quick start up and operational guidance’s.

About Laskil:

         La skil is an online business portal that helps connect business professionals and business owners alike. We conduct search on your behalf and endeavour to connect Franchisor & Franchisee; Licensor & Licensee; Service provide & service seeker; Investor & Investee, Manufacturer & Distributor etc. Register with us at http://www.laskil.com.

All contents herein are for informational purpose only and do not constitute legal advice.

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Laskil
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Source:Laskil online business portal
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Tags:Franchisee, Franchisor, Licensor, Licensee, Service provide
Industry:Legal
Location:Mumbai - Maharashtra - India
Subject:Companies
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