Novice entrepreneurs are often interested in the question: what is a franchise in trade? How to apply and where to buy? Why is it more profitable to buy rather than come up with the technology itself? I will try to answer these questions in the article.
What is a franchise in trade and in general in business?
The word franchise in the usual language is explained as permission to trade in products, may be with or without delivery. Example: you are a 33 Pleasure ice cream company, you came up with your own ice cream manufacturing technology, developed your equipment, you have a desire to develop, but there is simply no money to open new points. A decision is made to sell franchises.
A client comes to the company and says that he is ready to start building his business according to your plan, pays the cost of entry, and you provide him with your technology, help in daring the process of selling ice cream under your brand.
There may be 2 options for cooperation, you deliver ice cream to him, and he only implements it or he makes it in his premises.
Benefits of the purchase:
- You buy many years of experience
- Production technology provided
- Advertising materials are provided, usually a franchise is sold by a branded company, you will trade in well-known products
- Escort
- Useful recommendations on the spot
- Training
Now in more detail, in business, as in life, a very important role is played by experience, which comes through trial and error, you will miss this difficult stage of formation.
Production technology is responsible for the quality of the goods, you can come up with your own technology, but it is better to do without the invention of the bicycle, save time and money.
World trade leaders spend 30-40% on advertising, you will sell already promoted goods and your costs will be minimal. The main efforts will have to be made to inform buyers about the location of the point. The franchisor company provides promotional materials, the costs of their production are eliminated
The question “what is a franchise in trade” can also be answered in one word - accompaniment, you will receive legal and informative accompaniment to the result, since the partner company is interested in your success.
Useful recommendations for selecting a location and an initial assortment are also not important.
Training personnel on the material and information base of a franchisor company saves significant money.
Disadvantages:
- You will be required to accurately fulfill the contract
- In case of failure, the money will not be returned to you
In essence, a franchise is a new look at existing concepts, patented by the inventor in time. The attitude to this type of business may be different. The final choice is yours. I advise you to familiarize yourself with the offers of different companies, now there are plenty of them.
Have a good business!
