Franchises a Profitable Business Model and Growing in This Year
September 7th, 2009 | Author: Admin
Many businesses fail before the end of the first year since its creation, because of different reasons, we will analyze in other interesting articles, but there is a type of business that one can implement without much risk of failure, because the only thing is to capital to implement a system tested; I am talking about the franchises. For example, the franchise McDonald’s billed more than 3,500 million dollars in 2008.
To enter the world of franchises is necessary to take into account some recommendations that the following are:
1. Original Product and successful
The company franchisee must marketing a product or service original, either in terms of their intrinsic characteristics, such as to its way to offer it to the sale (packaging, systems for the sale by momentum, services of sales and aftermarket, etc.)
It should be a successful business, since the franchising doubles commercial successes and failures ever. In fact, the franchisee invests its money in the franchise to mitigate the risks and obtain in less time the return of capital, to the effect of which should analyze thoroughly the deals available on the market.
2. Know-how transmissible
The transfer of know-how is of central importance in a franchise. In fact, has been regarded as an essential component of the same. Know-how is a term originating in the United States that, despite its adoption throughout the world, it has no meaning unambiguous. It can be said that it is a technical skill or specialized knowledge in a particular field of business, a working knowledge of how to achieve a specific target, and in general, all technical knowledge that is secret, of restricted use and confidential.
For the purposes of a franchise business, the know-how it should be practical, original, in ongoing development and easily transmissible; these are the elements that characterized.
The general knowledge in that builds the success of the company franchisee should be able to be transmitted in its entirety to the franchisee by means of the so-called Operations Manuals. There are certain knowledge that it is impossible transmit them, and therefore cannot be subject to a franchise, such as the ability of a painter or sympathy or fame of a person in particular, which underpins the success of the business.
3. Legal Contract
All the obligations, rights and responsibilities of the parties are embodied in a legal contract of very different characteristics to other contracts of commercial distribution, which must be thoroughly analyzed and discussed by the parties.
It is not in itself a contract associations, but could well be seen as a contract for close cooperation between the parties, since it depends on success of the business of a harmonious and permanent contact.
4. Operations Manuals
In them transmitting the Know-How specifically for the operation successful in business. There are different types of manuals, among which are:
- Manual of Daily Operations
- Training Manual employees
- Manual of administration
- Manual of Management
- Manual of Marketing and Advertising
- Other manuals
5. Trademarks and patents
Without becoming a sine qua non, is desirable that it is a mark imposed on the market, to facilitate the franchisee an immediate access to it, either with broad possibilities of imposed.
The company franchisee must necessarily record all their brand names, logos, brand names, and patents, in order to avoid future legal problems, either with third parties or with members of the chain.
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Categories: Franchise Business
