Franchising
Essay Preview: Franchising
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Franchising is about minimizing risks and maximizing returns. It has often been said that franchising allows entrepreneurs to be in business for themselves, but not by themselves. A quality franchisor provides proven operating systems, solid research and development, established marketing methods and instant credibility – plus extensive training and support – all of which can reduce risk and build success more rapidly and affordably than in an independent business.
Franchising is also about the big idea. As an aspiring entrepreneur, you may have all the ability and ambition necessary to succeed – but without a compelling concept to sell, your business will not go very far. As a franchisee, however, you will be in a position to leverage some of the most innovative products and services available in todays marketplace!
Business success requires going through a learning curve for the type of business youre in. With franchising, the franchisor has already gone through that process and is highly motivated to share with you everything that has been learned. Franchises succeed because the franchisor has invested the resources to truly understand the business. There is a proven formula for success ready and waiting to be adopted by the new entrepreneur. How many non-franchise, independent businesses can say that?
And, because a franchise represents a large number of units with established track records, the prospective buyer has access to much more of the data required for sound investment decisions than would be available with a non-franchise start-up. Being able to study the actual performance of identical business entities is invaluable – as is the contact youll have with other franchisees, who can provide real-world insights into what it takes to succeed in the specific business youve selected.
Of course, what matters most is results. Franchising is by far the most successful entrepreneurial business model –