Business franchising or franchising as defined by Wikipedia.com, is the practice of the right to use a firm’s business model and brand for a prescribed period of time. From the definition itself, it is clear that there will be crucial interactions between franchisee and franchisor during the transaction. Business franchising requires a whole lot of trust to make it happen and before starting to indulge in business franchising, here is a list of pros and cons for one’s informational boost:
- Well established can lead to success – there are lots of franchise around and sometimes choosing the ones with big names gives the franchisee an extra edge. The success rate of franchising a well-known business is more likely to be successful than those businesses who are not.
- Continuous support – unlike starting a business, a franchisee gets a lot of support from the franchisor. This definitely helps the success rate knowing that the franchisee is not alone and has tons a lot of help and support.
- Location well picked – franchisors, especially the well-established ones, carefully and strategically choose the location where the franchise would be developed for the franchisee. This provides a very high guarantee of success rate for the franchised business.
- Fees – Usually there would be two type of fees that a franchisee would have to deal with, the Initial and ongoing fee. Initial fee is the price the franchisee has to pay upon franchising the business. Ongoing fees usually occur monthly as the franchise continues. These fees add up to the responsibility of the franchisee which make it a bit stressful that it is to owning a business.
- Assorted decisions – when choosing a big franchise, franchisees get to encounter different people of different positions making different decisions for the franchise, sometimes these kind of conflicts lead to the franchised business’s downfall.
- Hard work 24/7 – some think that after franchising a business, they just need to sit back and watch the income roll in. That is actually false. When it comes to franchising, hard work is needed to meet the standards of the franchisor to keep the franchise going.
- Safety – not all people can afford franchising big businesses, that’s why there are also small franchises available in the market. However, there are some that just offer scam services or services that won’t even be selling. The worst case scenario is paying the initial fee and not getting anything at all.
The best strategy to have a good start franchising a business is knowing that the people behind the franchise has no arrest records. To make sure that these people are arrest records free, run a background check on www.identitypi.com to check for any arrest records that these people might have.