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The following article was published in our article directory on August 9, 2010.
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Work-from-Home Business Opportunities - Franchising Diamonds - Financial Liberty from a Franchising Business-Enterprise

Article Category: Business

Author Name: Adolf A Agbormbai

Franchising is the process of beginning or running a small business wherein the rights of branded goods or services are given to a person in return for a royalty fee. Franchises are favorite among people looking to be business owners but who are apprehensive about the threats of opening a business.

Commencing a brand new business organisation can easily require undergoing a whole lot of agony necessitating following a long bureaucratic procedure and spending lots of time filling paper work. A quicker approach to fame and profit is usually to use a franchise. You fundamentally are only carrying on the trade of an recognized brand.

A franchise is a form of small business organization by which a firm which already has a profitable service or product enters into a continuing contractual relationship with other businesses operating under the firm's trade name and usually with the firm's assistance, in exchange for a fee.

In reality the franchisee rents the chance to use the franchiser's trademarks (including logos, colors, marketing materials, and marketing efforts), copyrights (in some instances), the right to sell the products and the methods used to operate the business and sell the services or products.

The franchisee pays an initial fee as well as monthly or yearly royalties to the franchiser. These are often calculated as a share of the monthly/annual franchisee's income, and traditionally is between 4%-5% but could easily rise to 10% for large known brands.

These royalties often include marketing efforts (i.e. advertisements on TV and Radio, and publicity events), equipment repair, employee training, and business development (i.e. research on new products and markets).

Today there are lots of brands in different sectors which offer franchising opportunities. These are also called turnkey enterprise opportunities. Most often the franchisee doesn't have to possess previous experience or expertise in the area on which the franchiser operates.

The franchiser will furnish the initial training as well as assist the franchisee in hiring personnel with the needed know-how in the area (i.e. posting job opportunities, collecting and analyzing CVs, undertaking interviews, and delivering personnel training).

Franchisers generally want their franchisees to achieve success. An unsuccessful franchisee usually means inability to pay royalties and a noticeably bad image for the entire brand (from negative publicity of the unsuccessful franchisee). Thus, normally, franchisers conduct their own market analysis and can assist you choose the ideal location for your brand-new business organisation.

Such market analysis assists them to identify the most beneficial location for setting up a brand new shop/office using statistical analysis of specific variables.

A franchise system has several advantages, and that's why it's been the dominant business-organisation model of late. Despite the fact that absolute statistics aren't feasible, most research that has been done reveals that the survival rate for franchise firms is substantially higher than for beginning a normal business (some say in a franchise small-business the rate of success can easily go up to 95% in comparison with a survival rate of 20% for regular enterprises).

Franchisers devote a great part of their yearly revenue on marketing (e.g. Television, Radio, and events) and normally have a dedicated marketing team to design, change, and implement the corporate marketing strategy. This type of dedicated marketing team with sufficient resources can readily prevail over crisis situations whether these are brand-related (e.g. a flawed product) or general (e.g. economic crisis).

A franchise also has a number of negatives which have to be taken into account.

1.CONTROL. As a franchisee you are not 100% the boss of your business enterprise. You have to follow the operations manual provided by the franchiser. Generally, you are not permitted to make business decisions without getting an approval first. Such decisions might include selling the merchandise of a different merchant, selling new merchandise, marketing the merchandise differently, or developing a custom discount policy. Yet such changes can be necessary in order to become established in the local market.

2.COST. In many instances the cost of signing for a franchise network is a lot greater than that of beginning your own small business-enterprise. Whilst you can easily begin your own home enterprise with a truly tiny amount of dollars, becoming a franchisee necessitates that you have a basic capital at hand. Also, as a franchisee you will need to pay the monthly or yearly royalties whether or not you make a profit.

3.OPERATING EXPENSES. Franchisers may force you to acquire all products, hardware, and office accessories from their store. You have to buy these products or services (due to the contract you signed with them) from the Franchiser, in spite of the amount of money it is charging. Quite often franchisers compel the staff members of their franchisees to take part in regular training in particular high-priced training centres. This could vastly increase your operating expenses.

4.APPROVAL BEFORE SELLING. Buying and selling corporations is normal for entrepreneurs. Sorry to say, in franchising a franchisee must request an approval before selling the enterprise. The franchiser must say yes to the new buyer before the sale can come about. This considerably decreases the likelihood of locating a good opportunity to sell the enterprise.

5.REPUTATION. As a franchisee your standing is strongly tied with and connected to every other franchisee in your network (this can be thousands). Bad news produced from any franchisee will influence your business organisation. Even worse, if the franchiser goes out of business you could possibly end up closing down your business organisation too.

This section highlights one primary group of franchising solutions. There are five parts to this set:

1.UNDERGROUND GUIDE TO FRANCHISING. This franchising guide offers tips and useful information for franchising. It's written by folks who have franchised their existing business organisation, and saves all of the "fluff" and legal jargon that lots of individuals might not comprehend when it comes to franchising. It breaks down franchising and provides you with all the necessary tools you need to franchise your business enterprise.

2.PRO BUNDLE. It includes easy-to-customize, easy-to-understand templates for essential franchising documents, including a franchise disclosure document, franchise operations manual, franchise tools and development resources, in addition to the unique Underground Guide to Franchising. It has all you need to create a prosperous franchise.

3.FRANCHISE OPERATIONS MANUAL. This is the holy grail of your franchise. It contains information on each aspect of your business organisation. This retail and service oriented guide makes it very easy for you to customize it.

4.FRANCHISE DISCLOSURE DOCUMENT. Among the most crucial documents for your franchise is your Franchise Disclosure Document. The Franchise Disclosure Document (FDD) is a legal document that franchisers must provide to franchisees, as regulated by the Federal Trade Commission.

5.FRANCHISE TOOLS AND RESOURCES. This comprehensive package of franchise development tools includes critical information and resources that you would need to run a profitable franchise. Must-have information. Every new franchiser can't afford to be without these necessary tools.

Sad to say, owing to constraints on space, we can't possibly cover the full details of the system unveiled here. But in case you are interested you could find out more on this system, which is highly recommended to all franchisers and franchisees, by clicking on this link:

Keywords: franchising, franchise, franchises, franchising resources, franchising book, home-based business, home business enterprise, work at home business, business at home, enterprise at home, small business

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