Having only one source of income is not enough to become financially independent. That is why many people are now embracing the idea of entrepreneurship. Entrepreneurship refers to an activity of putting up a business or businesses, which takes on financial risks in the hope of profit. One of the efficient ways to have a successful business is to make it unique and innovative as much as possible. If you do not have any creative concept in mind, you can opt for franchising. In the Philippines, franchise businesses are becoming popular to achieve financial freedom and stability.
In fact, our country is now known as the franchise hub of Asia since many entrepreneurs, especially the young ones, which engage in this type of industry. Thinking now of getting your own franchise, too? Read on and learn more about franchising and how it works.
What is Franchising?
Franchising refers to the legal relationship of the owner of a trademark (franchisor) and an individual (franchisee) pursuing the right to use the identification of the specific product or service.
How Franchising Works?
When the franchisor grants the permission to use its business concept to the franchisee, a detailed operational manual will be provided to ensure that the product or service offered by the franchisee will still conform to the quality standard set by the franchisor. Fortunately, most of the franchisors also provide enough training for the franchisee, so the latter can absolutely adapt to the business system of the franchisor.
What Should I Consider Before Purchasing a Franchise?
Before getting a franchise, you should consider various things just to make sure that you will make the right decision. Here are some of the factors that might help you in deciding:
- The required type of experience in the franchised business you will get.
- Consider the amount of time and personal commitment needed in running the business.
- Make sure to spend some time searching for the background of the franchisor.
- What exclusivity or protection do you have as the franchise owner?
- How much it is going to cost you to get into the franchise?
- Know how much you are going to pay for the continuing rights to operate the business.
- Know if there are any products or services that you must buy from the franchisor. How they will be supplied? Ask how this one works.
- In the terms and conditions of the contract, learn how the franchise relationship can be renewed or terminated.
- Be familiar with the financial condition of the franchisor and its system.
What are the Advantages of Franchising?
- Already have an established name in their respective field
- Less risk
- Franchisor can help in finding the best location
- Easier to secure financing
Starting to purchase a franchise business is one of the major decisions you will ever make. Learn that being a franchisee does not guarantee you an easy success and huge profit right away. However, with consistent commitment and time, passion, and perseverance, your business venture will definitely be a successful one.
About the Author:
Laurel Santos is a 24 year old grown up woman whose kid at heart. She lives in the city and works as a freelance photographer. She also manages a small pet shop inside their village. She loves traveling so much because she believes that one should not just die staying in without exploring the world. She got a big heart for animals especially those stray dogs. Despite her busy schedule she always finds time to do one thing that she is very passionate about which is writing.