Franchising – Franchising means is to give certain rights by one party to another in exchange for a sum of money. And those rights are used by the franchise for their business. It is also defined as
the contractual agreement between the two parties Franchisor and Franchisee.
Who is Franchisor?
Franchisor is the owner of the franchise business and he has his own brand name.
Who is the Franchisee?
The franchisee is the owner of the business who owns the right granted by the franchisor. On the basis of rights granted the franchise is divided into following categories.
Unit Franchise – This franchise is granted the right to run one unit or outlet of the franchise business.
Master Franchisee – In this franchise granted the rights to operate the business in a particular territory and it needs sufficient resources to control the unit.
Regional Franchisee – Franchise who has given the rights to operate in a certain region. A region contains many same kind outlets or trade.
Multiple Franchises – Some franchise operates not only a single franchise but they work on different kinds of the franchise business.
What is Franchise fee?
The franchise fee is the sum of money which is paid by the franchisee to the franchisor in exchange for given rights and brand name of the business. Franchise Lawyers can help you to decide the fee of
Four ‘R’s of Franchising?
To get success in franchise business here four ‘R’s can help you which is as under.
1.Realism –Franchise should be realistic in franchise business that means you have to be prepared to smile even the customer is totally wrong and be sure that you are ready to face any kind of loss in
2.Resources – Franchisee should be clear towards the resources required for the business that means they have to sure for the suppliers of the product and other resources.
3.Research – Research of the franchise is also compulsory before starting a franchise business because the success of the franchise business totally depends on the nature of the franchisor. He must have
to be supportive in all fields.
4.Resolve – It is also an important part of franchise business because there can be Franchise Disputes arise in business so it has to be resolve and Franchise Lawyers do this very well.
Franchise Legal – Franchise Lawyers are important in franchise business because they handle all the legal issues related to the business. They prepare the franchise agreement which is necessary to start
any franchise business.
The overall summary of this article is that in franchise business many things must be considered for the success.