What is a franchise

The concept of franchise (from the French. Franchise - privilege) means the acquisition of the right to sell the goods or services of any well-known brand. This is a mutually beneficial union in which the brand owner has the opportunity to receive royalties (monetary compensation) for the use of his name and trademark, and the entrepreneur receives a promoted name, training opportunity and proven technologies. The franchise option for entrepreneurs has a number of undeniable advantages.

An entrepreneur who has purchased a franchise license from a franchisor is called a franchisee. He thereby acquires materials, training and consulting. But the biggest plus for him will be a business partnership with a franchisor, who often provides the opportunity to purchase equipment from their partners with significant discounts.

The franchise gives the franchisee the confidence that starting his own business, he will not be left face to face with all the problems that are inherent in business. This is an insurance against many business risks. Receiving professional support from the franchisor, in any case, he remains the owner of this enterprise, which makes him an independent partner who is not threatened with dismissal. He safely gets rid of many mistakes and difficulties that other novice entrepreneurs face, from possible wrong decisions and unnecessary risks; he is insured by the support of the franchisor.

The franchise gives the entrepreneur the opportunity, receiving reliable information and ready-made business solutions, to choose the right location for his company, make its design and receive confirmation that the company is functioning properly. He has not acquired experience in the struggle for existence, but bought for money, but it’s worth it.

Franchisees have guaranteed support before starting their own business. He participates in training programs and is mastering a management system that has already been “run-in” and optimized by the brand owner. For some time he works directly with his franchisor, getting all the necessary skills and answers to questions that he may have. He receives constant support after the opening.

The franchise allows you to define and establish a clear territorial division for this type of business. The territory is determined by the franchisor, which controls the uniform coverage of its distribution network. This allows you to optimize interaction with the consumer of goods and services and eliminate unproductive competition.

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