One type of business is a franchise opportunity, whereby a fee is paid for rights to use an other firm’s name and operating methods. The firms sell facility designs, equipment, product ingredients and recipes and management systems to foreign investors, while retaining certain product and operating controls.
The “franchisor” authorizes the proven methods and trademarks of his business to the “franchisee” for a fee and a percentage of gross monthly sales. Various tangibles and intangibles such as national or international advertising, training, and other support services are commonly made available by the franchisor.
Until some time ago, I used to work in a shop which was a franchise, so I’ve got some idea about how it works. There were strict rules about some aspects of the business, mainly merchandising, visual set-up of the shop and also advertising. For instance, we used to promote the same products, using the same visual promotional material, the same as other countries. Basically as soon as you enter the shop, it doesn’t matter which country you’re in ‘cause you’re sure to find the same products, same product layout and same promotions as in other countries.
Businesses for which franchises is said to works best have the following characteristics
• Businesses with a good track record of profitability
• Businesses built around a unique or unusual concept
• Businesses with broad geographic appeal
• Businesses which are relatively easy to operate
• Businesses which are relatively inexpensive to operate
• Businesses which are easily duplicated
Did you enjoy Franchising - one way of doing business? Subscribe to RSS Feed.
Have you ever been to Malta? All you need to know is a click away! Malta Travel Guide, Bargain Accommodation in Malta, Malta Hotels
