08 Sep, 2017

Franchisor

A franchise is a company that allows one to run a store of their business. The person allowed to run a franchise is called a franchisee. A franchisor is the owner of the company under which franchisee operate. He/she is the owner of the overall company that gives franchising opportunities to people. Franchisors own the trademarks and products but give the franchising rights to franchisee to run a franchise using their brand name. The franchisee is supposed to pay some fee before being allowed to run a business under a given brand name. A good franchisor is the one who has a good business concept. This concept has to be replicable in that it should be able to be put into play to generate good income. Your business concept as a franchisor should be unique so that it stands out from the others in the same industry. It is good to remember that business is all about competing hence you need to come up with unique business ideas. When you have unique business ideas you will be well placed in terms of competition. Your ideas should also be easy to implement. Starting a franchise needs a good investment. As a franchisor you need to have enough capital to start your business. For your business to expand, you need to have money to buy goods. Depending on the industry you want to invest in, you will need to have money to hire employees and buy basic requirements. You will need premises to run you business in, money to pay for tax, and to cater for other monthly expenses. You will need to come up with a clear plan on how to raise this cash. It is also good to ensure you have got all the necessary legal documents of starting a business. When you have all the documents you will operate your business with ease. The most crucial thing that determines the success of your business is management. Good business management is what will see you get good profits. Good management will ensure your business plan is implemented. It will also you have the right tips to manage your business. It is good for a franchisor to have good communication skills. This is what will create a good link with customers. Having good relations with customers is what will make them want to come back. With good treatment, these customers will encourage other people to join your business.

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