English French German Spain Italian Dutch Russian Portuguese Japanese Korean Arabic Chinese Simplified

Thursday, September 3, 2009

Understanding Franchising Realities

The global economic slowdown upturned the financial and business sectors, leaving behind debris of bankrupt companies, jobless workers, and shaky investments. Some companies who are trying to hold on and survive through the debilitating financial crisis are doing everything they can to stay afloat. They make drastic measures, some of which directly affect their employees and workers, such as a big cut in pay and other benefits. That is why many employees are turning to other means in order to make ends meet or augment their reduced incomes.

Many go online and acquire payday advances for cash emergencies that are outside the regular budget, such as car repairs, minor house repairs, and other bills payments. However, there are people who are more innovative and creative and think of putting a small business of their own instead of looking for a second job. In this case, these people use their savings or pool money from family and friends to put up the home-based business. Others take out fast cash loans to set it up, particularly if the business only needs a small startup capital to begin with. However, there is another good alternative for those who want to go into business, and that is, to get a popular and solidly built franchise.

Franchising is being aggressively used by small business owners and entrepreneurs to expand their businesses. More and more of them are deciding to place their money in franchises as a faster and easier way of going into business, rather than create one from the ground up. However, as in any type of business, big or small, this growth and increase in franchising has its own share of concerns and issues. One of the big issues in the franchising business is expansion conflicts. What happens when the time comes to open another branch near an existing franchised branch? In the United States in particular, with so many successful brand names, from food to clothing, this issue has been the cause of court cases between franchisers and franchisees.

Presently, the lifeblood of franchise systems is expansion and swift market saturation. This is part of the franchise agreement, though. In other words, franchisers can be considered slacking in their obligations if they explore such market opportunities. When it comes to expansion conflicts or "territorial issues", it is best resolved by going back to the core goal of franchising: working together to achieve mutual benefits.


Johan_Kriegbaum

Enter Your Email Address For Update :

Delivered by FeedBurner



Related Post :




0 comments: