The Essentials of Sales – 101
Everything you Need to Know about Franchising Franchising is simply put as giving of rights to operate in the same products as the mother company to another business in another geographical location, away from the original business. We could also say that franchising is leasing or renting for an opportunity. The Mother Company is now referred to as the franchisor while the business that gets the permission to operate is called the franchise. The franchisee is required to pay to the franchisor some money to be allowed to operate. There are financial commitments that the franchisee must fulfill to be given the green light to operate. The franchisor only allows the franchisee to operate only when trademark’s royalty, the cost of training and advisory services and agreement to pay a certain percentage of each unit sold are met. When the franchise succeeds the franchisor also succeeds. The franchisee’s period of operation is limited to the franchise agreement. However the franchise agreement could be renewed every time it expires. Every single franchise is supposed to operate at the agreed location. Every party to the franchising concept is charged with a different role; the franchisor is obligated with protecting the trademark while the franchisee is charged with the role of carrying out the services that entail the trademark.
A Quick Overlook of Sales – Your Cheatsheet
Two types of franchises exist- the single franchise and the multi-franchise. The franchise that operates more than one unit is called a multi-franchise while a franchise that operates one unit is called a single franchise.
Why No One Talks About Sales Anymore
The franchisor and the multi-franchisee agree on what number of units to open and in what period and in a specific geographical region. A unique agreement for each unit of the franchise is set. The popularity of multi-franchise is very high. Multi-franchise has had much influence over the many years they have been in existence. To set up multi-franchises high levels of investments are required. Multi-franchises have high levels of stability which is their major advantage. The level of success of the multi-franchises is very high. Multi-franchises achieves more than original franchises. One location that a single franchise operates from might disadvantage it. The reason why multi-franchises have enjoyed exponential growth is that of popularity growth. With the success of multi-franchises the franchisors might want to cash in on that huge success by encouraging the multi-franchises to open more units. The other advantage with the multi-franchise is that when one unit seems not to be doing great, the other units may come in and help to revive them. Good researchers should be done to establish the viability of multi-franchises. Ready cash and other forms of investments are needed for the multi-franchise to thrive.