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| ArticleID |
80 |
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| Writer |
Grace Odinga |
| Category |
Personal Article |
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A franchise is a license or agreement among parties that are legally independent and gives people (franchisees) the authority to do one or all of the following;
• Market products or services using the trademarks or names of other franchisers or businesses
• Provide support to other franchisees
• Market products of other franchisers using their operation methods
There are different types of franchise arrangements as follows;
- Single unit franchise
- Multi-unit franchise
- Area development franchise
- Master franchise
The right way to buy a franchise
Follow these tips to get the most out of buying a franchise. If you do not follow these simple tips there might be some consequences as these field is full of fraudsters out for your hard earned cash.
Evaluate yourself – What do you like and dislike?
Research your market.
Consider your franchise options.
Talk to existing franchisees.
Ask the franchiser some tough questions.
Make your choice.
How to make your Franchise Appealing
Unique concept or marketing approach
Profitability
Registered trademark
Business system that works
Solid training program
Affordability
Positive relationship with franchisees
How to detect dishonest franchisers
Claims that the contract is “standard; no need to read it.”
Failure to provide a copy of the required disclosure documents.
Marginally successful prototype or no prototype.
Poorly prepared operations manual.
Promises of future earnings with no documentation.
High franchisee turnover or termination rate.
Unusual amount of litigation by franchisees.
Attempts to discourage your attorney from evaluating the contract before signing it.
No written documentation.
A high pressure sale.
Claims to be exempt from federal disclosure laws.
“Get rich quick” schemes, promising huge profits with minimal effort.
Reluctance to provide a list of existing franchisees.
Evasive, vague answers to your questions.
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| profitable franchise, franchisees,franchisers, make money, entrepreneur, Entrepreneurship |
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