What Is Franchising?

1. A person or group of people (the franchisee) is given the right to market a product or service using the trademark or trade name of another business (the franchisor)
2. The franchisee is afforded using the operating methods of the franchisor
3. The franchisee has the obligation to pay the franchisor fees for these rights
4. The franchisor has the obligation to provide rights and support to franchisees

In simplistic terms, franchising is where
a successful business format is replicated. This will involve the setting down into an operations manual all the systems and procedures that the business owner has found gives them the best chance of success. Anyone joining the franchise will be expected to operate the business exactly as set out in the manual.

This too is the most successful way for an Entrepreneur to look at expanding the business through interested parties. 

Bottom Line: Franchising must create a SYNERGISTIC Business Relationship between the Franchisor and Franchisee. This will lead to sustaining and creating a successful brand equity.

Between Starting a Business, Franchising offers must greater benefits. The utmost of all is the experience of the Franchisor who in the initial stages underwent trial and error. There are identified products and services as well as continuos research and development. 

However it is still the responsibility of the one looking for a franchise to do a due diligence on the selected choice of franchise business. Relying on the brochure or website are not sufficient but more of :

1. doing an actual market location study

2. suitability of the franchise business to the location

3. presence of the identified target consumers for the particular franchise

4. support provided by the franchisor

5. type of training to be given including the frequency

6. checking on the reputation of the franchisor