Another thing: a lot of people have a misconception that once you open a franchise store, the money will start rolling in as a matter of course. This isn't the case at all. You as a franchisee must really learn how to run the business; you need to familiarize yourself with the various nuances of its operations.
It's highly advisable to talk to other franchisees before making your choice of franchise. What is their relationship with the franchiser like? Are they getting the right amount of support from the mother company? Are they satisfied with the business model? Aside from meeting with franchise personnel of the company, be sure to get to know those people you will be working most closely with as you build your business. The President of the company is most likely an impressive person, but that's not who will be answering your call when you have a problem. Find out who will be providing the operational support and training directly to you and form an opinion about their competence. Make sure that any remaining questions or issues you may have are addressed at this meeting.
Also, you need to read franchise agreements thoroughly before signing them or handing them to a lawyer. The franchise agreement spells out the details of the relationship during the period of the contract. Reading and understanding the various expectations and commitments spelled out in the contract will help you a lot because ultimately, it won't be your lawyer but you yourself who must live up to your part of the deal.
If everything is not cle, don't attempt to go through it by yourself. Even with your business acumen, there are bound to be a few things you might overlook which may cost you in the long run. There are people who can guide you through the franchising process and help you review and discuss unfamiliar topics or material. Lot of expert out-there, don't hesitate to consult first.
Advantages of Franchises
* One of the major advantages of franchises is the established name recognition it provide to the business. If a small business is associated and linked with a big-business then there is a high probability that the small business would propel due to the firm backup and support of an established big business. Running a small business under the franchisor's name and organization is very beneficial for businesses that can't afford much finance and capital investment for their own business.
* Another major advantage of franchises is that when a business is associated with a franchisor then the big-business themselves help in corporate marketing of the small industry or business they are providing support for. Having the interest of big-budget industries in a low-budget business is a very effective marketing tactic and these franchises policy ensures the proper marketing of a small business.
* An advantage of franchises is the bulk purchasing power it gives to small business and industries. Since most of the initial financial burden is provided to the business once it's franchised by the franchiser therefore this enables the business to buy equipments, products and other necessities to run the business with ease and without worrying about the financial investment.
* A major advantage of franchise is the training and management facilities the franchisor provides to the business. A company which provide capital and investment to any small business have vested interest in the success of the small business. Therefore the companies that provide franchise ensure that the business in which the money is being invested is run and manage properly. The big-businesses and industry provides all the necessary training to the small business staff and provide additional resources and decision-making capabilities to a small business.
Disadvantages of Franchises
* Disadvantage of franchises includes the indulgence of a big-business into a small business. The creative control that a small business owner have is often hinder when franchising in done. Any decision which is to be made is to be consulted and approved by the franchisors. This limits the authoritative control of the small business owner to a great extent.
* Another disadvantage of franchises is reaching a general agreement on terms and conditions. There are several occasions when the term and conditions imposed by the investors and franchisors are biased and getting a firm deal with the companies safe-guarding the interest of both parties is a complex task.
* A disadvantage of franchises is that the much time is required while selecting a franchise. A complete and through research is required to select the right franchise and to determine whether it would work for the business or not.
* Another disadvantage of franchises is that this is a complex procedure and there are numerous instant during the business when heated discuTession and disputes occurs between the small business and franchisor.
This site will help you for list of latest available franchise in the Philippines;
Phils. Franchise Association - http://www.pfa.org.ph/
Unit 701, One Magnificent Mile, San Miguel Avenue, Ortigas Center, Pasig City
Tel: (02) 687-03 65 to 67
Association of Filipino Franchisers, Inc. (AFFI) - www.affi.com.ph/
Unit 3A, Classica I Condominium, 112 H.V. dela Costa St., Makati City
Tel: (02) 633-8547
I agree that, you could not able to earn money quickly with just open a franchise store. You have to learn that how to run a business and make it successful as well. Above blog is informative for that.
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