What is Franchising?
It is a business relationship in which the Franchisor (owner of the business, IP, Copyrights etc. providing the product or service) assigns to independent people (the franchisees), the right to market and distribute the franchisor’s goods or service, and to use the business name. The period of time is usually fixed. The International Franchise Association defines franchising as a “continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organizing training, merchandising and management in return for a consideration from the franchisee”.
Benefits of Franchising:
- Higher chance of success than in a sole proprietorship
- No need to research, test and model, which could not only cost but consume more time
- Takes lesser time to kick start the operations – read revenue generation
- Initial training and continued updates for support regularly
- Lower costs through mass procurement of different material like kits, books, bags etc.
- Make the most of an established and tested business model
- Lead generation through website and other centralized means, could add to business building