Thinking of going into business? Not sure though of what business to go into? Let alone the product, the service or what marketing you should employ to your own business?
What about Franchising?
I’m sure most of us who are looking into getting into the business side has one way or another, thought of franchising first before we dive into the deep realm of putting up our own business. Why not? If Franchising would help us to learn more about running a business without the added stress of coming up with your own product or service to sell, a business system that you can rely on to make your business work. It’s like Franchising gives you the advantage of having a lifeline in case you would always need one as you can ask for guidance and support from the Franchising company you choose to partner with.
But one must first understand what Franchising is all about. Franchising is considered as one of the three business strategies that a company may use in capturing a market share , that is from a company’s viewpoint. It is a company’s business strategy to acquire new customers as well as keep customers, a way to expand and further distribute their products and services to wider reach of market. That is why Franchising is offered by companies for those entrepreneurs who are looking to capture a slice of the market they are sharing.
According to the International Franchise Association (IFA), franchising is defined as an agreement or license between two legally independent parties which gives:
- A person or group of people (the franchisee) the right to market a product or service using the trademark or trade name of another business (the franchisor)
- The franchisee the right to market a product or service using the operating methods of the franchisor
- The franchisee the obligation to pay the franchisor fees for these rights
- The franchisor the obligation to provide rights and support to franchisees
In short, franchising can be defined as a strategic alliance between groups of people who have specific relationships and responsibilities with a common goal to dominate markets in order to keep and get more customers.
