Business Plan Studio Infographic
PROJECT SUMMARY The goal of the project is to open a studio dedicated to the creation of static infographics and custom video infographics. In this business plan, calculations are made…

Continue reading →

Business Plan Studio Infographic
PROJECT SUMMARY The goal of the project is to open a studio dedicated to the creation of static infographics and custom video infographics. In this business plan, calculations are made…

Continue reading →

What is forex trading? - The main features of forex trading
Forex trading is trading in various foreign currencies. In the recent past, this type of trading was available exclusively to institutional traders and large banks. But now ordinary people can…

Continue reading →

What is a franchise: the principles of franchising

What is a franchise and how does it work?
A franchise is the right to use a company name, that is, a brand. In addition to the name, the franchise buyer, as a business partner, receives from the franchisor – franchise owner:
corporate standards
patent rights and inventions
right to use technology and strategies
business plan
core business model
business support
In other words, a franchise is a set of relations between two parties, regulated by a contract that provides all the conditions for cooperation and indicates what kind of franchise the franchisor provides. This document is called a franchise agreement.

If you give a simple example – a franchise gives you the opportunity to open a branch of a well-known company for your money, which ultimately will be your property.

The buyer of the franchise for the first time receives the equipment, suppliers and assistants, if it is regulated by the contract.
What is a lump sum and royalty?
To buy a franchise, you need to familiarize yourself with the two methods of payment. The lump sum fee is a one-time payment of the franchise. Most often used for small projects and enterprises. After payment you have the right to use the brand name and technology of doing business.

Under a different payment option franchise imply royalties. This is a systematic payment (monthly, every six months, every year). Royalties often make up a fixed amount or percentage of revenue. The terms of the franchise allow two methods of payment of royalties: in a limited period and throughout the use. In most cases, royalties are chosen for large projects.

Main types of franchise
There are many types and types of franchises. Their classification depends on the terms of the agreement and purpose. Here are the main types of franchises that you should know about.

Business franchise
The most common type of franchise, in which an independent entrepreneur is offered an established business, name and trademark. Since the buyer receives all the necessary help and support from the company, the type of business franchise is often called a “turnkey business”. An ideal example of such a business would be the opening of a fast-food restaurant of a famous brand.

Commodity franchise
Provides for the purchase of the right to distribute the product that the franchisor manufactures. The buyer is obliged to purchase a certain amount of products, after which he receives national advertising campaigns, a trademark, a logo. A good example would be any brand of car manufacturer.

Production franchise
The manufacturer granted the right to manufacture and sell the product under its trademark. Covers a wide range of products. For example, all food and beverages are made using this particular franchise.

What are franchises?
Direct franchise – the right to open one company in a particular place. The easiest type of relationship. If you have the opportunity and desire to open another institution or store, a new contract and payment is required.
Multi-franchise – makes it possible to take obligations to open several trading places in a certain territory for a specific period of time.
Master franchise – involves a clear commitment, but to all franchisees can sell the franchise in your region.
Free franchise – the owner of the rights does not control the buyer after the sale of the brand name.
Silver franchise – the company organizes the action of an open branch and only then transfers the right to temporary use.
Golden franchise – transfer of ownership of a business in a separate region with a monopoly of further development decisions.

The main advantages of buying a franchise
The advantages are that you do not start from scratch. You have a plan and technology work. All promotional materials are ready. You are known, you have potential customers.

You learn from the experience of the company, which makes the business productive. You are not at risk because the company is interested in your success and guarantees you support.

The main disadvantages of buying a franchise
Of the minuses a bit, but they are more than significant. First, it is the cost of the franchise. Of course, if successful, the soum pays off, but at the same time you can lose more than you would have spent on opening an independent business. Secondly, constant control and lack of discretion. Project conditions often clamp the buyer into a rigid framework on the path of business development. Any idea for change must be consistent with the company and can often be rejected.
When buying a franchise, pay attention to:
Company reputation
Term of the franchise
Company network development speed
Terms of support
Cost and Payment
Summing up, you can mark the purchase of a franchise as a justified option for starting your own business. According to statistics, eight out of ten franchise companies are successful and continue to generate income. However, building everything yourself or cooperating with a brand is up to you.

Own business: how to open the salon "Photos on the documents"
To open a photo salon on documents, 100 thousand rubles is enough. At the same time, the demand for photo services for documents continues to grow, as well as for…

...

Deposit: what is it and why is it needed?
Deposit - storage of funds in banks, which in certain conditions and within a certain period are subject to return. The term "deposit" comes from the Latin language and is…

...

Typography: large format printing. Development and production of outdoor advertising
One of the ways to convey information to consumers of goods and services is outdoor advertising. A well-designed poster, a sign on the window, the highlighting of the name of…

...

Own business: hosting company
Industrial society was replaced by post-industrial or, as it is also called, informational. The modern world is impossible without high-speed transmission of information, pigeon mail has sunk into oblivion, having…

...