a franchise is part of a larger company that has the plans and what not for the buinesssetting up your own buiness means you have to come up with all your plans by yourself
I will break it down to you as easy as I can.A Franchise is something like Mc Donald s There are many owned and not one of a kind.You also have to pay the Franchise a percentage of a Royalty fee to own a Franchise.Owning your own business means you make all the rules,you really are your own Boss,you think up your own business name for your shop,as well as have a full say in everything that is done.Franchisees (person who owns a Franchise) does not have a full say,they are limited to how they run their business by Corporate rules.
There are some basic differences between a franchise and D-I-Y (Do It Yourself) business. Statistically, the survival rate over 5 years is much better with franchises. This is a relative figure. Not all franchises are equal. Some franchises offer the business owner everything they need to succeed. Others just give a start up package and training.#1 Difference:If you buy into a good franchise then the organization has a vested interest in your survival. Yes, they control everything - but the risk is lower. --You are buying the blueprint of a successful business. --You are buying into a product that already has an established market.--You have support from head office.--Years of experience at your finger tips#2 Difference:When starting your own business, it is up to you to learn everything. And, there is rarely money for advertising. A franchise often includes packaged advertising included in the franchise fees. There is very little to learn. The company has already tweaked their strategy and identified the marketing and operational aspects that work - and those that don t. This eliminates taking risks on new products, marketing to new niches, and wasting money waiting 5 - 12 months to see if an advertising cycle works.#3 Difference:You start making money faster. Again, this is relative. But, when a consumer drives down the road and sees a franchise sign they will often go to the franchise. (In Canada, $4 out of ever $5 is spent in a franchise)The number one rule is to do your research. Not all franchises are well managed or maintained. It is best to get information on 5 - 10 different franchises before making up your mind.
Hi Alley,As a franchise consultant, one of the most important questions any first-time potential business owner asks me is whether to start their own new venture or to look at franchising. The answer has many components attached to it that need attention. Let s review some of those considerations.Starting up a new mom and pop type business is statistically very risky. Numerous studies have been conducted on this subject, and the general consensus indicates that 90-95% of new independents fail within two or three years. The steep learning curve that is involved can be a killer all by itself. The few who do succeed in this business model typically have an extremely high level of expertise in their product or service. They ve lived it all their lives. When it comes to franchising, however, much of the risk is reduced, or even eliminated. Although there are no guarantees, this business model is as close as you ll come to a guarantee of success. The same studies show that new franchise business startups rarely fail. The reason for this, quite simply, is because the often very long exercise of trial and error has already been done so many times that it s reached the inevitable point of trying and succeeding. The franchiser has made it through the learning curve and, along the way, has developed the success secrets for that business. Those who fail in franchising almost always were not committed to following the franchiser s systems. The main reason you buy a franchise is to minimize risk and to set yourself up for success. Traditionally, in a new startup, independent business, you are almost always operating from a shoot from the hip mentality, which can lead to failure. There is no past experience to draw upon, and it becomes challenging to control all aspects of the business. With a good, successful franchise model, you open yourself up to a deluge of information regarding all aspects of information, including financial assistance, site selection, and a wealth of knowledge from existing franchisees. Also, rapid growth is inevitable with the franchise model, which is only a good thing for a franchisee for many reasons, such as increased name/brand recognition and exposure to national advertising campaigns, which increase sales. Tremendous buying power because of constant expansion is also a major plus. Of course, the key is to follow the proven system of success, so your creativity can be somewhat lessened. In addition, you will have to pay a franchise fee and an ongoing royality, and your individual ability to make changes to the franchise is reduced dramatically. To summarize, franchising greatly reduces risk, enables you to follow a proven, successful system, and increases your chances of success in business exponentially.
Franchise: you get support from the Franchiser, such as martketing assistance, product development etc. The fate of your business is largely determined by the Franchiser. You cannot introduce new products yourself.Own Business: all decisions, risks and rewards lie with you alone.
very good
