Franchising, to put it simply, is a form of doing business on your own account, but under someone else's brand. This is a solution for people who want to start running their own business, but do not have a specific idea for the business. How to start such a business?

Franchising is a cooperation agreement between a franchisor and a franchisee. Under the agreement, the franchiser undertakes to grant the right to use its trade name and trademark. In addition, the franchisor also guarantees technical and commercial assistance for such an entrepreneur. Using the franchise activity, the entrepreneur can count on the help of the franchiser. It should also be remembered that the franchise involves fees. Before opening a business, you will have to invest your own capital and pay a fixed fee to the company that is a franchiser.

Franchise - why?

Many people decide on franchising, this is because it has quite a few advantages.

You can use a proven and recognizable brand. The franchiser offers a proven idea, knowledge and experience. In most cases, it is a business that will bring profits and the risk of running it is rather low.

Support of the franchiser

The franchisor offers assistance in running the business as well as in opening it. Basic obligations include training of the person who is to run the company and its employees, assistance in finding a location or opening further points.

How does the franchise work

Lower marketing costs

When opening a business the entrepreneur does not worry about advertising costs. Thanks to the knowledge of the company in the community he will immediately have a recognizable brand. The goods must be ordered from the indicated supplier, therefore there is no discretion here either.

Not only the advantages

Although there are many benefits, franchising is not only an advantage. First of all, you will have to reckon with the costs that you will have to bear if you decide to do so. Additionally, it will be necessary to follow certain solutions applied by the franchiser, in this respect we will not be free to build our view on the company and look for opportunities to develop it in such a way.

You have to reckon with the fact that the entrepreneur who owns the network may make some mistakes in managing the networks and this will continue to affect the franchisee as well. The good name and conditions of the network may change for reasons that will not depend on us, not everything will be decided by us.

The types of franchise are divided into different subtypes, the basic division refers to the types of activity. We have a distribution franchise, i.e. one in which the franchisor has knowledge of the product range, goods and sales. Under a specific brand, you will be able to sell it. A service franchise is the kind in which an idea is made available in the form of procedures and recipes for the provision of services. These opportunities will depend on the nature of the business and therefore we must also take such issues into account in the company.


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