Business researchers have established that about 20 per cent of all businesses started anywhere in the world survive beyond three years.
A business scholar says some entrepreneurs whose ventures are likely to survive are those who take up franchises rather than set up fresh enterprises.
Prof Francis Gatumo of United States International University’s says a franchise deal is sealed when an existing and robust business (the franchisor) grants permission to another person or business (the franchisee) to use the former’s business idea.
In many cases, he says, a franchisee operates in a specific geographical area far from the franchisor but where the goods or services are in demand.
In this arrangement, the franchisee sells the franchisor’s products or services, trades under the franchisor’s trademark or trade name and benefits from the franchisor’s support.
Some common franchises are fast food, restaurants, hotels, clothing and publishing. Read more.
