Global franchise conference

Franchising is a system of business relations between the franchisor and the franchisee. Owning a franchise gives you a right to operate under the name of a famous brand and use its technology and merchandise. It means that an existing company, a franchisor, takes under the wing entrepreneurs and provides necessary tools to help them navigate the business aspects of a business. These tools include passing on experience, production technologies, marketing strategies, patent rights and inventions. In exchange, a franchisee has to pay a franchise fee, monthly royalties, marketing fee, etc. Each franchisor requires a different set of financial contributions.

Acquiring a franchise varies depending on the brand you select. Basically, it can be sorted out in the following way: 

• Send an inquiry on the brand page 

There are also franchise exhibitions and catalogs of franchises on the portals, like TopFranchise.com, where you can search and compare franchise options and consult experts. These portals are reliable sources with guarantees that you find what you’re looking for.

• Communicate with the representative of the company about preferred franchise and learn about the prospects 
• Get a contract, or FDD, franchise disclosure document, study it (it is better to involve specialists)
• Meet the founder or brand representatives and upon agreement of all conditions, sign the document
• Contribute a lump-sum fee and become a proud owner

There are times when before signing the FDD, potential candidates must undergo training and interviews. Many franchisors have a thorough selection process to determine whether a candidate would be a good addition to the brand. As for the grand opening of the franchise, more often than not, the franchisor helps through all stages of launch.

Franchising is a prosperous system that has many benefits. Some of them are: 

• Ready-made business plan: franchisors have rich experience and are less likely to undertake any mistakes regarding business development. As a franchisee, you acquire a well-proven business model.
• Brand: an ability to use a popular trademark familiar in certain circles will significantly speed up entry into a wide market and reduce costs to a minimum.
• Training: franchisors provide working training that helps entrepreneurs to work in the preferred line of business without having prior experience in the field. 
• Location: franchisors actively take part in selecting the best territory to ensure good sales. 
• Assistance with staff recruitment: many franchisors have recruitment programs that can help you fill your establishment with necessary staff. 
• Protection from competition: a franchise often gives the exclusive entitlement to a franchisee to run an enterprise in a specific area. Therefore, there will be no overabundance of supply.

However, there are also downsides to having a franchise. Consider the following before taking on this venture: 

• Franchise  fee. Its sum can be rather big. The size of the lump-sum fee differs depending on the franchisor and scale of business. 
• Royalty. The average royalty fee is 6.5%. If the franchise requests fixed charges that don’t depend on actual sales, this can be rather high-risk.
• Restrictions. Franchisees have to abide by some rules and standards set by a franchisor.