Franchises

Okay so we are at a point now where we understand and know we have what it takes to be an entrepreneur, but one of the first questions we must consider is:

"Do we set up on our own or do we operate as a franchise?"

So what exactly is a franchise?

Without saying the word 'like'...

A franchise is when an established business, know as the franchisor, sells to another business or individual, known as the franchisee, the right to use their products, service, logo, branding etc. This is in exchange for a lump sum and royalties.

The franchisor provides:

• training
• equipment
• promotion and marketing tools

but most importantly...

• a well established brand name with tried and tested products

The amount a franchise will cost will vary depending on the business itself. Every organisation will have different administration costs. This will be calculated depending on the likely turnover of the business and the profit margin.

Do you know any franchises?