A Franchise is business in which franchisers sell their business rights to franchisees. It is very difficult to drive more than one block in most cities around the world without seeing a franchise business. For example, one of the most well-known businesses in the world is McDonald’s. McDonald’s is a Franchise business.
Franchise businesses are available across a wide range of industries.
You must first ask is a franchise business right for you?
If so, the next question is how to open a franchise business?
To get started, the franchisee must pay an initial fee for the rights to the business training and equipment required by that franchise. There is normally an ongoing royalty payment involved, which could be calculated on a monthly or quarterly basis and gross sales can also be taken into account.
If you want to “stop working for someone else” then perhaps franchise business isn’t the right one for you. As an operator, you are not completely free to do as you please. For example, you will be required to keep the business as it is. For example, sell the same products; continue to wear the same uniform. When buying a franchise the franchisee is not just buying the right to sell a product, but also use successful and tested business methods. The franchisee will also have to use similar pricing in order to stay in line with advertising.
Throughout the process of selecting a franchise, select a franchise that you will enjoy and one that you can see yourself doing years down the road. Profits and business growth is exciting for a while, but if you have something that you enjoy doing you are more likely to stick to it.
So as mentioned, the most well known franchise world-wide would be McDonald’s. McDonald’s Restaurants serve about 68 million people a day, in around 120 countries.
Started by Richard and Maurice McDonald in 1940, it was 8 years later in 1948 that they re-organized and started to produce hamburgers. Businessman Ray Kroc joined the company in 1955, and eventually purchased from the McDonald’s brothers, and oversaw it as it grew worldwide.
A McDonald’s restaurant is either operated by a franchisee, an affiliate, or the McDonald’s corporation.