A franchise is an authority given by a franchisor(company) to another person or a group to sell its products/services under its name by giving the amount of fees and the person who buys it known as a franchisee, it is a legal process.
For example many famous franchises are McDonald’s, Domino’s, first cry and etc. But before buying any franchise some important points should be clear and kept in mind:
- Before taking any franchise market research is essential as without the knowledge of a particular product/service making investment is worthless.
- Analysing the investment cost beforehand can be more profitable, and hire a good analyst for making a smart decision.
- Competitors in that franchise, it is very much important to keep in mind about the parties providing the same product or service with other brands and comparing their prospects.
- Looking for a good location where business can run is the main point.
- The taxation policy of a government and permits should be kept in mind.
- It’s important to read all the franchise agreements points carefully so that any confusion can be avoided.
- It is not necessary to make a huge investment in a franchise, small investments are also very profitable.
Taking a franchise is becoming a trend nowadays but before investing keep in mind the P’S in franchise:
Legal Points
Product’s Popularity
Profitability
Persistence
Positive attitude
