Entrepreneurship is both exciting and exhausting. It is exciting because you are creating something new and venturing into untested waters. It is exhausting because of the massive efforts that go into launching the business. Evaluating a business opportunity is one of the most tiring tasks, both intellectually and in terms of time and money involved. And at the end of it, you may still not get the picture right. Franchise opportunity owes its rising popularity to its ability to make this task superficial. A franchise offers research insights, market opportunity, and a proven brand if you are willing to invest.
Owning a successful business model brings up a thought for expanding, but how do you grow your business without spending millions? Franchising is a growth opportunity for business-owners which allows entrepreneurs to sell the rights of their establishment to another person to open another unit of the same business. In a franchise agreement, the buyer pays the business owner a percentage of the sales by operating the replica of the brand which follows the same business structure as the parent company. Both the franchisee and the franchisor benefit by this expansion as the brand builds a name for itself in another location and the sales depend on the reputation.
What is Franchising?
Franchising is a growth opportunity for business owners which is availed by selling the rights to open another branch or unit of their business, following the same business model and structure, to another party. In a franchise arrangement, the buyer pays the business-owner a percentage of the sales after opening a replica of the franchise business under the direction of the franchisor. This benefits the franchisee by operating a well-established brand name with a fixed business structure while the franchisor benefits from the sales and expansion of his brand.