Vehicle Washing Franchise

Posted by on December 23, 2014 in General |

The franchise is the practice of using the business model of another person. The franchise is a word of Anglo-French derivation of Franc – is used as a noun or as (verb). A franchise is an agreement between the franchisor and the franchise recipient. There are two important elements that payments are made to a franchisor the trademark which distinguishes the franchisor, and the training provided to the franchisees. The franchiser receives a royalty for the trademark and a rate of training and advice. The franchise is, in general, for a certain period and is given by a territory. An exclusive franchise can be or not exclusive.

Various tangible and intangible, such as national or international support services of advertising, training, and others are made available commonly by the franchisor. The agreements usually last between five to thirty years, with the cancellation or premature termination of most of the contracts, with serious consequences for franchisees. The franchise It has existed for many centuries, but did not to fame until the 1930s in the United States, when the establishment of electricity, vehicles and, in the 1950s, the interstate highway system helped push modern franchises, especially the franchise based in food service establishments. According to the International Franchise Association, approximately 4% of all businesses in the United States are franchises. WHAT ARE THE ADVANTAGES OF FRANCHISES? According to the United States small business administration, the franchise has several advantages over independent retailers. They are: reputation: it is a licensing system established and well known, the new dealer doesn’t have to work to establish the reputation of the firm. The product or service being offered already is accepted by the public.

Working capital: it costs less money to operate a concession business, because the franchisor gives the dealer good controls of inventory and other means to reduce costs. When necessary, the franchisor may also give financial assistance for operating expenses. Experience: the advice given by the franchisor compensates for the inexperience of the new owner. Managerial assistance: a small independent store owner has to learn everything, and an experienced retailer can not be a master in all aspects of finance, statistics, marketing and sales promotion. The best franchise companies give the dealer continued assistance in these areas. Utilities: to assume reasonable costs of franchise and supply agreements, the concessionaire usually can expect a reasonable profit margin, because the business is operated with the efficiency of a string. Motivation: since the concessionaire and the franchisor benefited from the success of the operation, both work properly to achieve it. Original author and source of the article.

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