| Franchises
A franchise is a legal agreement between the owner of a name, product, or management approach and an entrepreneur who buys the right to use that product. The agreement can take many different forms, as can the services offered by the franchisor to the franchisee.
You may be interested in franchises for several reasons:
- You may wish to buy a franchise
- You may already be the owner of a franchise
- You may be looking into franchising your business
Each of these has its own set of issues.
1. If you are interested in buying a franchise, it is important to proceed cautiously and knowledgeably. There are a number of resources that can help in planning and exploring various franchise opportunities. A good place to start is How to Start a Business/Franchising.
2. If you already own a franchise, you probably have an established infrastructure in place and your business concerns are similar to those of most small business owners--you must be willing to work hard, make decisions, and confront challenges. In addition, there may be unique problems such as conflicts between franchisees and franchisors that must be worked out.
3. Franchising offers many advantages as a way to expand your business. It also requires a great deal of planning and development. The steps to successful franchising include:
- Trademark your name and other marks
- Set up several units to make sure the idea is sound
- Develop systems for all aspects of the business
- Set up a training program
- Develop the UFOC (Uniform Franchise Offering Circular)
- Have an ongoing support program in place for franchisees
- Sell franchises
|
