If you have weighed all the pros and cons of this type of business and yet have firmly decided to open a franchise – our article will help you. In it, we will look at all stages of starting a franchise business and tell you what you should pay special attention to aspiring franchisees.
What is a franchise?
Suppose you are passionately willing to start your own business. You have money to start a business, but you are afraid of losing everything overnight due to lack of experience. You just do not know where to start: a business idea? Marketing plan? As time shows, in our country in the first five years, more than 80% of new enterprises are closing. But it is still possible for a budding entrepreneur to secure his business: it is enough just to conclude an agreement with the franchisor and become a franchise or a user of the brand.
A franchise is an agreement that a brand owner proposes to an entrepreneur
Thus, even the most inexperienced businessman can open his own business under the name of a promoted brand, without worrying about risks. Just imagine: you will use the logo of a well-known Russian or foreign company, which has long established itself as a consumer. In addition, you will enlist the support of these business luminaries and can use all the strategies and technologies they have developed.
- If you do not have large financial resources and do not expect large investments, then you should pay attention to this type of franchise as a direct one. With it, you will easily enter the market with minimal investment. When you purchase a direct franchise, you get the right to open one or several representative offices in this region.
- You can choose for yourself the most profitable and convenient type of cooperation with the franchisor:
- The standard franchise is perfect for aspiring entrepreneurs who are just starting their way into the business. This kind of cooperation suggests that the franchisor “takes under the wing” of the newly-made franchisee. The right holder will provide you with support at all stages of the opening of the case but will require you to consistently comply with the company’s standards. With this approach, you can avoid many mistakes when opening and running a business.
The free franchise should be enjoyed by more experienced investors. If you are an experienced entrepreneur and want to quickly promote your business to the market, then this kind of cooperation is for you. In it, the rules of the franchise are set conditionally, so you have the opportunity to fully own their work.
The replacement franchise will suit those businessmen who already have their own supplier base or the moment of choosing products and equipment is fundamental. If you are the owner, for example, of a manufacturing enterprise – a small plant in a remote region of the country, then this type of cooperation is the best fit for your business. In this case, the franchisor chooses the methods and technologies of work, and you choose the suppliers yourself.