The larger the company becomes, the more it has opportunities for growth - you can open new offices, branches in other cities or become a whole network. In the latter case, one owner will not cope - it is necessary to transmit the case of successors: people who want to work under a friend to many brand. In this material we will tell you what problems have to decide those who decided to buy a franchise.
What is franchise
Speaking by a simple language, franchise is the right to work under a well-known brand and use its work for rapid promotion and successful business. Franchise can be bought in any segment: fast food restaurants, clothing, coffee shop, beauty salon, fitness club, car wash, other. For example, the price is only the right to work under the brand McDonalds - $ 45,000, which is approximately 3 million rubles. The cost of the franchise depends on several factors:
- Brand recognition
- The number of points opened
- Equipment that is included in the price
- Additional services - recruitment, designer layouts, promotion in social networks
Must be taken into account the interests of both parties
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Benefit should get both sides
The main rule of the franchise business is to take into account the interests of both sides. The seller's interest is to expand the regional business card and increase brand awareness without additional investments. Your interest is to make a profit paying for costs, and deductible income to the level. If the franchise seller tries to impose your goods, and not the services, and is not interested in your information support, it is worth abandoning such cooperation in favor of a more honest entrepreneur. Experienced businessmen carefully follow how their successors develop the network - control the quality of goods and services, communicate with customers and conduct independent checks.
Lack of analytical data
Franchise is not just a piece of paper, but a serious package of information, especially valuable at the beginning of the activity. It is important that the seller gave you a complete analytical summary - the economic situation in your region, an assessment of solvency, a list of competitors' companies with their advantages and minuses, the dependence of profits from external factors like the season, the average visitor check and so on. The more information you have, the clearer you will be able to make a forecast for clean profits. Unfortunately, not all companies are so carefully about their franchisees, so they will independently examine the market and determine the best deals.
Request analytical data
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Inattentive study of documents
Strange, but many compatriots do not pay due attention to the study of documents. You must take the habit to read everything that sign - from checks to business contracts. Unfair companies and franchisors can enter into the contract the boal conditions for the control of your business and the sanctions following their violation. It is also important that the Party selling a business model assumes obligations to register in Rospatent, otherwise it can at any time withdraw your license to work under the brand.
Promise of golden mountains
Of course, every green businessman wants to recoup his costs for the month, and better in the day, but this alignment is impossible. If the eldest partner promises you that literally after 2-3 months you will go on a net income under large investments, then do not believe him and look for another. Many experienced businessmen try to increase the coverage of the regions as soon as possible, to then sell the finished business for the high cost without their own investments in the expansion of geography. Attract an experienced lawyer to study the terms of the transaction and all documents in order not to get on the fishing rod.
Examine the conditions, otherwise, will remain with the nose
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