You can learn how to make the right franchising decisions, be a successful franchisee, and find the franchise opportunity that's right for you IF you are well armed. We can get you started right here with this article which can assist you in finding the right opportunity.
Franchising has a long history. Franchising is a system of expanding a business under a recognized brand or name. McDonald's and Wendy's are business franchise systems. A franchise occurs when a business licenses its trade name and is operating methods to a person or group that agrees to operate according to terms of a contract. The franchisor provides franchisee support and according to the contract exercises some control over the franchisee. The franchisee may pay a fee plus royalties for use of the trade name and operating model of the franchise. Franchising is one of America's major exports.
The International Franchise Association
Franchising is the most popular system for growing a business in the United States today. The International Franchise Association (IFA) is a membership organization of franchisors, franchisees, and suppliers. According to the IFA franchising has experienced explosive growth since the mid-70s and is expected to be the leading method of doing business in the new century. According to the IFA most franchisees are satisfied with their decisions to open their franchise business.
The average franchisee in the U.S. makes $91.000 per year. There are two types of franchises: Product Distribution Franchises and Business Format Franchises. Product distribution franchises are mostly sales and distribution business such as gasoline and soda distributorships. Business format franchises have more units than Product Distribution franchises in the United States.
The Franchising Agreement
The franchise agreement or contract which will bind both sides will spell out certain terms which need to be agreed to and enforced. These include: Area Radius, which is the distance in miles from the new franchisee location which will remain free of similar franchises opened by the franchisor while the agreement is in effect. The area radius terms might include restrictions that take into account the number of housholds within the radius, the population or number of people, the zip code, and other boundries including highways and streets. Enforcement of the area radius terms will avoid problems relating to brand penetration. Too many units = "encroachment".
Franchising agreements can be single unit, multi-unit or dual branding.
Today, about 80 different industries are using franchising. These include: fast food, retail, service organizations, automobile related, full service restaurants, maintenance, building, business services, and lodging.
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The Franchise Opportunity Guide
Bonds Franchise Guide
Franchise Annual
Franchise Handbook
International Herald Tribune Franchise Guide
Businessforsalenetwork.com
I.F.A
FranchiseTimes.org
Franchise-update.com
About The Author:
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This article was written by J.
Mark Soveign who writes for Wertheim Communications LLC as well as Mooker.Com Did you like this story? If so, vote for it on your favorite bookmarks site: |
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