What exactly is a business franchise?
In its most simple definition, a franchise is a business opportunity that allows the franchisee (possibly you) to start your business by legally using someone else’s (the franchisor’s) expertise, ideas, and processes. In some cases, this means also having the right to use the franchisor’s established name and branding, as well as their already-tested business model. In other cases, this means the right to resell (or distribute) a franchisor’s product.
More completely, a franchise is the right to use someone else’s business system. As a franchisee, you purchase this right by means of a franchise fee and in accordance with a contract, called a franchise agreement. In return, the franchisor maintains the business process and you agree to operate your business according to their model.
When you hear the term “franchise”, the most familiar example is fast food-type of business. The important thing to note is that Franchisors like Boy Kanin are not just selling easy-on-the-budget rice meals; we’re selling a consistent way to run a business that sells these affordable rice meals. This includes marketing, advertising, recipes, the look and feel of the facility from which you, too, would sell economical boxed meals, and the very well-known branding that goes with our system.
Fast food and restaurants are not the only examples of franchises, though their success is probably what brings them first to mind. Just about every industry you can think of includes a successful business practice sold as a franchise-from janitorial services to TV shows to salons. There are as many different franchise business systems as there are goods or services that people wish to use.
Franchising is one of the greatest ways to start your own business and be your own boss. This is why everybody should know what it means. Here we will throw some light on the matter, giving you a very simple explanation of the word franchising.
An Example of Franchising
Imagine that Mang Juan has built a successful bakery and makes a really fine bread. For the last years, his brand has been well established and everybody in town knows about the tasty bread he makes. He has a really profitable business, but doesn’t want to expand, because of the fact he doesn’t want to be involved in the management of new stores and people. Also, he doesn’t have the money for doing this. So, Mang Juan decides to take advantage of franchising. Everybody, who likes his business and has a passion for starting a company can use his proven business model to start a branch of Mang Juan’s bakery. For providing the know-how, Mang Juan collects some pesos for the initial fee and 5% of the income of any new business unit. In exchange he gives the right to the new business to use his trademark, helps with the start of the new store, with marketing and with training their staff. This is actually how the fast food empires of burgers was actually built.
Franchising is simply when a business (franchisor) sells a well-established and successful business model to other businesses (franchisees). This way the franchisor expands its business and brand without having to manage the new branches, and without the need to invest money and resources to expand. The new store/business unit is almost independent and separate company, that is managed by its own manager and has its own staff. What the franchisee takes advantage of, is the opportunity to start an already working business and receive complete know-how for running it. It operates under the brand of the franchisor and sticks to some rules in order to clone the same successful business model. The franchisee gets the right to use franchisors trademark.
In exchange for the lucrative business model, the franchisor collects a percentage of the income (or profit) of its franchisees and sometimes a one-time fee at the beginning of the contracts between them. The taxes and fees may vary, sometimes the franchisor may take a stake of the equity of the franchisee.
Boy Kanin regularly conducts FREE BUSINESS FRANCHISING SEMINAR. Yes, you are reading this correctly. We offer FREE Business Franchising Seminar. All you have to do is call us up at any of our numbers below at your convenient time or shoot us an email to book an appointment. It’s that EASY! And yes, the SEMINAR IS FREE, UNDER NO OBLIGATION TO PURCHASE OUR FRANCHISE.
For seminar details and to book an appointment:
Please call the following numbers:
(Globe) +63 917.344.3427
(Sun) +63 923.683.1409
(Landline) (02) 352.8130
You could also send us a private message on our Facebook page and on our Instagram page.
Do you find this post interesting? Please consider sharing it with friends and help us this way with the development of the site. Thanks!
Follow and Like Tropang Boy Kanin: