The Franchising Business
Posted On Sunday, October 19, 2008 at by Sun Jun This episode of Go Negosyo Big Time answers most frequently asked questions about Franchising like 'What is Franchising?', 'What kind of business to franchise?', and 'What are the things to consider when getting a franchise?'.
What is Franchising?
"Franchise" is from the French word "free", is a method of doing business where in a Franchiser licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a regular payment and usually a percentage piece of gross sales or gross profits as well as the annual fees.
A franchise is a proven business formula that has a 90% success rate.
Branding Levels
1. Brand Identity
2. Brand Recognition
3. Brand Preference
4. Brand Loyalty
The higher in the levels the Brand you are trying to franchise, the more expensive it will be.
What are the things to consider when buying a franchise?
What are the things to consider when buying a franchise?
- Your personal trait. If you are very creative and entrepreneurial then franchising may not be for you.
- Choose a brand or product that you are passionate about.
- Know the franchise system.
- Know the financial strength of the company
- Know the life stage of the product
- Know the personality and virtures of the franchisor as well. Know whether they choose their franchisees wisely and if they have a good reputation.
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