Franchising - The Greatest Invention of All Time?

If your here then this means one thing, you are ready to venture out on your own but not by yourself. This is what franchising is. Over the past few decades entrepreneurship has become apart of the American dream. People want to have the freedom to work for themselves and to make a lot of money but don't want the full 100% risk of starting their own business. The concern is reasonable because when one starts out on their own everything is on them. They have no brand or any identifying logo that immediately jumps out to people. This is why I want to explain what franchising is and how one can get started in such a business venture.

When one wants to buy into a franchise more often then not the idea is to buy into an already branded company. When a company already has a brand like McDonald's then this allows the franchisee to immediately have a customer base. When large chain names advertise their able to market on television thus getting their names out to millions of consumers. With that name recognition already in place it will allow for what I call upfront sales.

Another area of franchising that makes it so alluring is the company's business model. Beginning ones own business model is tough enough, because your company would be new and people wouldn't have an opinion about your place because they hadn't purchased any of the products that you sell. Having that solid business model allows for the franchisee to market the way the company does and to use those methods because those are what the company had already spent money on researching.

Also with franchising the main goal of the company is to grow their share in their industries to a level where they can be the majority player. In business today a company can't grow without grabbing market share and their not able to grow shareholder value without increased sales.

Franchising is a system of business that works and can be beneficial for the individual who wants to be an Entrepreneur.


Serrgio_Wilson

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