Franchising As Economic Vehicle For Growth

The simplest definition for franchising is: A way of conducting business whereby a franchisor licenses trademarks, systems and methods of conducting Business for a franchisee in exchange for a repeating ongoing consideration i.e. A contingency fee or franchise management fee. franchising is one form of a business where the owner of service, a product, or method obtains distribution through affiliated dealers. There is A franchisor expected to provide assistance in organising, training, marketing, promotion, and giving direction in return for consideration. franchising usually entails A contractual agreement between a franchisor And the retail franchisee, which permits the franchisee to conduct a given corporate form under a proven name and based on a given pattern of business to leverage on the franchising opportunity.

DOES franchising IMPLY THAT YOU ARE SELF EMPLOYED? In some respects, NO. You still have to answer to somebody else and follow their direction. You do not really own the company, you own the assets you have purchased as a way to set up the business. If you consider that you're in business for yourself, but not by yourself, then YES.you're self employed. franchising IS THE FASTEST GROWING BUSINESS ECONOMIC MODEL. franchise opportunities is the most famous and also the quickest growing business economic model. He collects business relationships that enable individuals To share brand identification, a proven way of conducting business and successful marketing and distribution system.

When many people think about the franchise opportunity, they believe fast food. franchising, however, long ago grew beyond the hamburger and fried chicken providers. Today franchise concepts span over 70 distinct goods and service sectors, such as such businesses as automobile repair shops, kid's art facilities, physical fitness clubs, regulation & consulting clinics, and home based businesses. The marketing business model has turned into a major economic engine internationally and it's one that is providing increasing opportunities for businesses and individual entrepreneurs. For component of the world, franchising opportunities is an ideal vehicle for the economic empowerment of the historically disadvantaged sectors of the populace. This brings with it the demand for the establishment of franchises. That's, franchising businesses which are established, which has a distinctive offering and where the way of conducting business has been tried, tested and perfected. Aside from empowering businesses and people, there should be a certain concentrate on identifying labour intensive companies that have the capability to make a positive and significant impact on job creation and also those companies that have a service or product that offers for export markets with the best aim of flourishing local economies.