What is Franchise? Understand from an Expert!

Is investing in gold or property the best ultimatum a businessman has? Well, have you ever considered franchising? Or do you even know how well shaking hands with the franchise can make you feel better? To understand this gem of a business, it is very essential to get into the depths of its meaning.

Franchise- An underrated term

According to the Oxford Dictionary, a franchise is authorization by a government or company to an individual or group enabling them to carry out specified commercial activities.

Cambridge Dictionary has laid a simpler definition,

Franchise- a right to sell a company’s products in a particular area using the company’s name.

Our expert, Dhinal Baxi, founder of THE FRANCHISE INSIIDER has given the most creative and understandable meaning of Franchise, which is

“Franchise is a business marriage between two partners, where there will be success as well as disputes but in the entire journey of business, both parties will guide and support and grow together.”

BUSINESS MARRIAGE BETWEEN TWO PARTNERS!

You would be wondering, who these two partners, well they can be any individual, company, or government. They are referred to as the Franchisee and the Franchisor. Let’s understand in more detail,

Franchisee buys the right to operate a branch of an existing brand and handles day-to-day management whereas Franchisor sells branches of their successful business for a fee and oversees the big picture for the overall brand and all its franchisees.

Here is a small conversation between both the parties,

Franchisor- My business is locally grown; it is time to expand now! Well, the best way I find is franchising.

Franchisee- My friend, I have been looking to invest for months and could not find any worthwhile business to go forward with it and I am delighted by your business. Let’s join hands!

Franchisor- That is great! I will provide you with all the technical, staff, training, and equipment support and as you are my friend I will just charge ----- royalty fee per year.

Franchisee- Let’s do some business now! Hahahahahha.

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As soothing as the above conversation is, it is more soothing to get a high rate of interest every year through franchise business.

Why wait to start from scratch, just join an existing business and grow, and

START FRANCHISING!

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Dhinal Baxi