Advantages And Benefits Of Home Based Franchises
Advantages Of Home Based Franchises
The motivations for the franchisor to create a franchises are essentially the following:
Access a new source of capital, without losing or diluting the control system of marketing.
Avoid the high fixed costs that typically involve a system of distribution warehouses couple themselves.
Cooperate with independent distributors, but highly motivated because they own their own businesses.
Cooperating with the local businessmen is well integrated in the middle of the city, region or country
Create a new source of revenue based on technical know-how which owns commercial.
Conduct a rapid increase in sales, taking the success a snowball effect.
Benefit from economies of scale through the development of the franchise system.
Franchisors to provide its franchisees initial and ongoing support services The initial essentially: a study of Mercado, a study of locating a restaurant franchisee, assistance in negotiating a lease, a conception of the interior decoration of point of sale, training of the workforce, models of accounting and financial management. The services include a continuous monitoring operation, promotional materials, training of cadres and employees, quality control, national advertising, centralized purchasing, information on market development, audit and financial accounting, insurance approved, and so on.
Benefits for the Home Based Franchises
the motivation of the franchisee is mainly benefit from the experience, the reputation and the security, coupled with the brand image of the franchisor. In this basic reasoning add the following considerations:
Have the possibility to start a business with little capital
Reduce the risk and uncertainty, since this is a project of proven success.
Benefit from improved purchasing power with suppliers of the franchised chain.
Receive training and ongoing assistance provided by the franchisor.
Have access to the best sites, thanks to the reputation and the financial power of the franchisor.
Receive an aid to managing the marketing and financial management and accounting of the franchise.
Have local and well-designed interior decoration.
Profit from continuing research and development of new products or services.
Have the ability to create your own business as an independent belonging to a larger organization.
The franchise agreement is a relatively flexible form of collaboration between the franchisor and the franchisee. However, there are three indispensable foundations for the strength of a franchise agreement, which are:
