Posted by Jess Saba on Sat, Sep 19, 2009 @ 11:53 AM
Franchise Information
Many entrepreneurs enter into franchise contracts as a way to manage the risks involved with starting a business. Potential franchisees are usually looking to run their own business while increasing their chances of success.
Franchising is a great alternative to starting from scratch because it can offer entrepreneurs access to experienced professionals, an automatic position in the marketplace, operational cost savings and a large network of peer franchisees.
There are two basic types of franchises.
Product/ trade name Franchise:
Franchisees purchase the right to sell a product or to use a trade name. The franchiser does not typically offer support which allows the franchisee to operate as an independent business person. Franchisees are essentially distributors for the product manufacturer.
As a product/ trade name franchisee, you have the opportunity to combine business ownership with the benefits of an established business model including access to franchise wide marketing efforts, national brand recognition and brand reputation.
Examples: Brand name stores, automotive dealerships, gasoline stations, beverage bottling companies.
Business Format Franchise:
When a franchisee purchases a business format franchise they receive access to the total business system. The benefits include training in marketing, sales, accounting, company standards, economies of scale benefits, expert advice and guidance and geographic territory rights.
Essentially, the franchisee receives detailed instructions for duplicating a tested business model. The franchiser provides training and guidance at start-up and throughout business ownership.
Choose a format then add hard work
While franchising helps reduce risks and increases the chance of success and longevity of the business, seeing positive results takes dedication, long hours, hard work and a deep desire to see the business do well.
For more information Click Here: To read " Raising Entrepreneurial Capital" by John B. Vinturella and Suzanne M. Erickson.
