Some,Facts,About,Franchise,Bus computer Some Facts About Franchise Business
----------------------------------------------------------Permission is granted for the below article to forward,reprint, distribute, use for ezine, newsletter, website,offer as free bonus or part of a product for sale as longas no changes a Gone are those times when the companies and the organisations didn't need a hi-tech system to handle them. Owing to the considerable increase in the business sector and thus, an enormous increase in the complexity of the organisational struc
Whatis franchise business?Franchise business is a form of tradepracticed by few companies for distributing their products by thirdparties. The independent operator trades with the business method,goodwill and goods of the company. He/ she has to pay a royalty feeand a percentage of their total income to the company. The companywho allows the independent operator to use its trademarked goods iscalled the franchisers. The independent operator who takes this kindof dealing is called franchisee.Whichare the companies who can opt for this form of trade?This form of trade is very useful forexpansion purpose. Some companies who can opt for this kind ofdealing are:Companies with a good annualprofit record.Companies expanded over a largergeographical area.Companies with unusual concepts.Companies which are less expensiveto operate.Whatare the advantages of Franchise business?Such trades are advantageous on thepart of the owner as well as the holders. From the holdersperspective:It provides self employmentopportunities to the person who has acquired the license for sometrade from the owner.It provides an opportunity tostart this form of dealing without having to go through a lot ofhazards of starting a new company altogether.It provides the new holder withtraining from the prime owner. With this expert training he/ shestands with a bright opportunity of expanding their trade.From the owners perspective:They have the opportunity toexpand their business over a larger area.They will have to go throughlesser legal proceedings. It is a kind of selling out the ownershipwith some other person.They will have the opportunity toget a higher income. The holder will utilize his full expertise toattain the highest income. This in turn will come as an income tothe owner.Therefore,on an overall basis you can call such dealings the safest bet foryou. If you are the owner then you can get your business expandedwithout having to worry a lot. At the end of the year you can expectto get a handsome amount as royalty fee and percentage of the totalincome of the franchiseebusiness.If you are the holder then you can enjoy the entire profit of thebusiness by giving out only a part of the total income. The successof both the parties depends on how well they bid on the contractamount. The holder will be successful if he can bid the lowestroyalty fee and percentage on the total income. The owner is alwaysthe most beneficent. In any case, it is a win-win situation for boththe parties.
Some,Facts,About,Franchise,Bus