Franchise business

Share this post on:

First of all, let us define – what is a franchise? A franchise is an agreement between the franchisor and the franchisee, where the franchisor sells the right to sell the product or service. Everything to start and continue a business is provided by franchisor, in the case of Ralph Emerson this includes: financing of initial inventory and all required fixtures for ten years. Franchisor provides the buyer with the product (tobacco, pipe, cigars), trade name (Pipe Dreams), operating activities, management support, experience… You buy a made business, and in some way become a business owner. However, before deciding to buy a franchise, the person should thoroughly investigate and evaluate franchise market, offer, concept, support, performance, profit, sales, costs, and assets. There are many companies, accountants, lawyers who may help and check all required details. Also the person should take into account advantages and disadvantages of such a business.

Advantages of franchising include:

– risk minimization, while this is a proven and tested business;

– trade name, customers prefer to buy products of a well- known name, and https://extra-services.eu reliable quality

– lower advertising costs

– support, experience, financing, training – all details how to run a business day by day are given by franchisor

Franchise business gives you confidence from the start. The other important advantage of franchising is low business risk, compared to independent business. If you buy a franchise, you will have exclusive rights in your area location, while the franchisor will not sell other franchises in the same territory. The next advantage of franchise is that you buy a business with the volume of sales (the process of achieving sales volume in independent business is much longer).

Disadvantages of franchising are the following:

– total control; you will not be your own boss, you can not run the business as you wish; you are not allowed to make changes

Share this post on: