subject: Franchise Opportunity Rather Than Complete Business Set-Up? [print this page] Franchise Opportunity Rather Than Complete Business Set-Up?
Many people now-a-days are looking to set up their own business due to the ever increasing family and social demands for money and the devastating pay cuts that many couples and families have had to take in recent months. The economic crisis that we are only just pulling ourselves out of has hit a lot of people in a very hard way and made them think a lot more about their future and their family's future and how to secure it.However, setting up in business can be an extremely difficult task and only when everything is sorted can you finally relax and enjoy the fact that you are your own boss and have to answer to no-one! The difficulties that owning a business present means that more and more people have now begun to look at a franchise opportunity rather than setting up a business from nothing.The majority of people understand what a franchise opportunity is and how to become involved in one, however there are still people that do not fully understand the concept. A franchise is basically a method of distributing a company's products or services. The franchisor is the person who owns the trademark or company name. The franchisee is the person who pays a fee and a percentage of business profits in order to use this trademark for their own part of the business.Many people are now looking at a franchise opportunity as possibly the best way there is to begin in business as you are simply extending onto an already very successful one - providing you do your research!For example, take a large company such as McDonalds for example. McDonalds is a huge and extremely successful company that anyone looking to make money would literally jump at. If this company were offering a franchise opportunity, you would pay an initial fee and then a portion of the profits that your unit of McDonalds made back to the main company. This way, they are making more and more money each day and doing none of the work, and you are raking in the profits too from your new business.As good as it may seem to enter into a franchise with an already large company, you need to ensure that you carry out a large amount of research before you do or sign anything. Something like this has to be thought about for a long time and you should only ever go ahead when you are absolutely sure that you are making the right decision and have received all of the correct information from the people that you are dealing with.
