Franchise is a way of doing business or rather an invocative business idea, wherein an established business that is running successfully using tried and tested methods, licenses their trademark as well as the methods they use to produce a product or offer a service to an entrepreneur who is interested in performing their activities. This person is referred to as the franchisee and the business offering the license is referred to as the franchisor. In return for their license, the franchisee will give annual fees and additionally a certain percentage of their gross profits.
Small business franchise is where franchise is extended to small business entrepreneurs. There are several areas where small businesses can venture into franchise. Here is a list of some very common small business franchise opportunities that most of us would have come across in our nearby neighborhood itself.
Many people take to small business franchise because it offers plenty of opportunities for business growth. The techniques and technology used in a successful and well-established business is used in operating a franchise, which means better chances of success. The various benefits of small business franchise include:
Before entering into a franchise, you need to do some research. One of the most important things you must see is a Uniform Franchise Circular Offering (UFOC). This is a document that provides extensive information for a franchisee on the franchise they are thinking of taking up. It is mandatory to get this from the franchisor or franchise broker to know about the details concerning your franchise operations. Supporting documents about results from other franchisee performances and their outcome should also be given as this helps you to come to a rational conclusion on the effectiveness of your decision to start a franchise.
When meeting your franchisor, you need to ask relevant questions to support your decision to take up a franchise and give you assurance that your managerial skills can be put to profitable use in doing so. Here are a couple of useful tips on this:
Look into the answers you receive and then decide about entering into a franchise operation. In running a franchise what is required is good managerial skills, more than entrepreneurial skills and an excellent communication with your franchisor to turn out success.