He term franchise is refers to a relationship between two parts, i.e., when a person acquires them rights on a product already existing in the market to start his own business, as for example the name commercial. One of the examples of franchises in almost all parts of the world is the great and recognized McDonald’s fast-food company, is a franchise since its premises can be found in several places and all guarantee that in each of them the flavor of your menus will be equal to the rest.
How operate the franchises?
In a franchise must have a franchisor? The franchisor is who authorizes to the franchisee the license of the product so can perform them business, from name of the brand until activities commercial. While it’s a good business, minimizing the risks that could have when starting a new venture that is not known in the market, the franchisee is not at all benefited, since in reality do not have ownership of the brand or product, so it cannot have full control over it as well as having to pay certain amount of money.
Franchises that companies can expand quickly over the world without the need to make large investments, moreover, the franchisers always retain a large part of the control of products.
The franchise began to exist several centuries back, but recently began to be popular in the year 1930 in the United States.
Perform the contract for a franchise is being quite free, since usually have several clauses. Despite this, every country has some rules. The clauses that can be observed most frequently are:
A certain amount of obligations when it comes to agree in the advertising of the product, both the franchisee and the franchisor,
Terms of compensation. These tend to be in many types of contracts.
Identification of the franchisor and the franchisee, i.e. the owner of the franchise and the entity that will work those products.
It is very important that when wanting to start a business as a franchise is taking into account certain points which are essential, as for example the investment. Investment is in the first thing that one thinks when you want to start a business, make a good investment will make the future of the franchise to have some security and does not generate any debts.
Another point fundamental is the confidence between them two parts, both for the franchisor as the franchisee, both must be safe of the person to which transferred part of the control and right of their products and the effort at the time of work as if a business were own.
Many companies have had success using this mode of negotiate for to expand is by all the world, today are many them large brands that have attained be in a level desired by many entrepreneurs, a clear example is the of the brand of gaseous more recognized all the world, Coca-Cola, this company has known take advantage of each instant along them years them opportunities that is you had for continue with the success of their business so much so that today it is one of the most impressive in the world.