The dream of having your own company might be there, but the ideas are not. There are many solutions to the problem, one being a franchise. A franchise is a business model, a concept where you pay a fee to the owner or to the brand to use a made business concept. It is often connected to certain rules assortment, equipment and result. Why this is depends on brand or business owner care for the status of their brand and wants to protect it. You find this method in most businesses and branches, both products and services. The word Franchising is an internationally established expression. It comes from the Latin word” franco” that means right or privilege. By becoming a franchiser, you will be a part of an established concept and the business idea is already set and well working.
Franchising started in the 1860s when Singer Sewing Machine Company gave permission to business owners to sell and advertise their products. Later on, they added a service to the concept, repair and maintenance. This was in the American countryside and the franchisers that were approved could use the whole business concept of Singer. Franchising grew big in America in the 1960s with giants like car renting company AVIS and fast food chains Kentucky fried chicken and Mc Donald’s. Seven Eleven is another example on another brand that uses the concept of franchising.
If you are interested in becoming a franchiser you should look in to how it fits your views on business. By making a list of pros and cons you can get a good picture on how it will be. Usually you get a lot of support from the Franchise. When something is meant for all franchisers it is usually free of charge. Having the benefits of being a big chain also gives you a good network with other franchisers in the concept, they become your colleges. You get a company ready to go. Marketing concept is done, IT-systems as well. This will also increase your profits since you won´t do the mistakes of a new businessowner since you get help all the way from others that has started the same kind of company. When it comes to purchases there are often good deals since there are very large amounts to the whole Franchise.
Challenges of franchising
There is lots of hard work being a business owner, of course also in franchising. In a franchise you take an economical risk when binding your money to the business. On this note it is important that you have made a sustainable budget, it is your own responsibility as a franchiser. You will make big decisions that will affect many people, but you will have support from the Franchise. The Franchise has, in nine out of ten cases, the right to set boundaries for how you should run the business. This means that the freedom of being on your own is not always there as it is in a non-franchise. This is of course also an advantage since when you are in a well-tried concept where mistakes have already been done. Since the Franchise demands a fee it is important that you have these in your budget. To have in mind is that these fees should be in comparison with costs that you otherwise would have if you were on your own.