If you’re new to franchising, this introduction should give you a basic understanding of the concept, the variety and the requirements of a format for rapidly replicating a proven successful business with the support and branding of a national organisation.
How Franchising Works
Franchising is a ‘business marriage’ between an existing business (the franchisor) and an individual (the franchise owner). The franchise owner buys licensed rights to clone the franchisor’s business concept in a specific territory for a specified period, backed by full training and support from the franchisor. The franchisor provides a ready-made, established and tested business format including name, corporate power, know-how, training and ongoing support services.
Investing capital, time, effort and any relevant past experience to create their business, the franchise owner replicates the franchisor’s business formula/system, gaining a safer, more structured, brand-led way of moving into independent business. The franchisor gains a new outlet in a new territory with minimum capital investment in setting it up.
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