BUSINESS FRANCHISING: Considering a Master Franchise | CuppyCake.Info

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BUSINESS FRANCHISING: Considering a Master Franchise?

Thinking about buying into a franchise system, it is important that you understand exactly how franchising works, what fees are involved and what is expected of you from the franchise outfit.

An individual who contracts and run a franchise is called a ?Franchisee?. The franchisee purchases a franchise from the ?Franchisor?. The franchisee must follow certain rules and guideline already established by the franchisor, and in most cases the franchisee must pay an ongoing franchise royalty fee, as an up-front, one- time franchise fee to the franchisor. Franchising has become one of the most popular paths of doing business in today?s market space. In most major cities you cannot drive three blocks without seeing a nationally recognized franchise company.

Brief Account of Franchising ?????

Franchising begin back in 1850?s when Isaac Singer invented the sewing machine. In order to distribute his machine outside of his geographic area, and also provides training to customers, Singer began selling licenses for entrepreneurs in different parts of the country. In 1955 Ray Kroc took over a small chain of food franchise in the world, now known as McDonald?s currently has the most franchise units worldwide of any franchise system.

MASTER Franchise is an agreement on acquisition of franchise across international boundaries and covering the control of the whole of a national territory. If a company acquires say a franchise for the territory of Ghana, it becomes the master franchise. The company could divide the country into territories for the purpose of selling the franchise locally and expanding its market presence. This is often the case as the need to consolidate the market growth.

The master franchise holder appoints area franchisee one of the rights and responsibilities that go with developing the franchise in Ghana.

Finding a master franchise could be an arduous task, however there are so many means to do this. You could make enquires through the National Franchise Association which has a tab on it members activities. You could also visit a trade show or expo where there one. Embassies and trade office in other countries could be helpful in terms of making information available.

Foreign embassy or trade office in your own country could equally be useful.? Other possible sources of information are trade missions, referrals, the internet and advertisement seeking franchisees.

In acquiring or wanting to be a master franchise holder, there are issues you most consider. These are issues that have to do with the legal and regulatory environment, import rule and custom procedures, corporate taxes, cost and availability of labour.

Further consideration is the purchasing power of the population, economic and political stability, current situation analysis of franchise in the country, difference in language and cultures, sources of financing and a business plan.

You have to be guided by the level of intellectual property protection and enforcement. You also need to worry about availability of skilled labour and cost of training. The success of the franchise will depend largely on the ability of the population to purchase goods and services and the cost of your products or services.

Investment is known to surge in the direction of countries with economic booming. They pose less risk for business. In considering a master industry in the country. Differences in language and culture are possible disruptive factors when negotiating and considering the product or services. The truth if you will succeed in Nigeria food market space (Ready to serve) foods, then you must be local delicacies inclined. An offering does well in liberal society may probably not be accepted in a country with particular religious tendency.

Strength of Buying a Franchise

There are many merits to buying a franchise:-

-????????? Corporate Image: ? The corporate image and brand awareness of the company is already established. Consumers are always more comfortable purchasing items from a familiar name or company they trust.

-????????? Training: ? The franchisor usually provides extensive training and support to the franchise owner.

-????????? Savings in Time: ? Since the franchise company already has the business model in the place you can focus on running a successful business. It is a great way for individual to own business. If you are thinking about buying a franchise, do your homework, research the company and you consult franchise attorney before making final commitment.

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MORONKEJI OLUWASEYI IBRAHIM -
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