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The following article was published in our article directory on July 26, 2010.
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Work-at-Home Business Opportunities - Franchising Treasure House - The Fascination of a Franchising Business-Enterprise

Article Category: Business

Author Name: Adolf A Agbormbai

Franchising is the process of establishing or operating a business enterprise wherein the rights of branded goods or services are given to a person in return for a royalty fee. Franchises are preferred among persons aiming to be business owners but who are concerned about the risks of commencing a business.

Initiating a brand new business enterprise might require suffering a considerable amount of discomfort necessitating following a long bureaucratic procedure and spending a lot of time filling paper work. A faster path to fame and profit is to try a franchise. You fundamentally are only carrying on with the trade of an recognized brand.

A franchise is some type of business organization in which a firm which currently has a thriving service or product enters into a continuing contractual relationship with other companies operating under the firm's trade name and usually with the firm's assistance, in exchange for a fee.

In reality the franchisee rents the ability to use the franchiser's trademarks (including logos, colors, marketing materials, and marketing efforts), copyrights (in some cases), the right to sell the products and the methods employed to operate the business and sell the services or products.

The franchisee pays a preliminary fee together with monthly or yearly royalties to the franchiser. These are commonly calculated in the form of a share of the monthly/annual franchisee's income, and commonly is between 4%-5% but could easily increase to 10% for large known brands.

These royalties often include marketing efforts (i.e. advertisements on Television and Radio, and publicity activities), equipment servicing, workforce training, and business development (i.e. research on new products and markets).

Today there are various brands in different sectors which offer franchising opportunities. These are also called turnkey business opportunities. Typically the franchisee doesn't have to have prior experience or expertise in the area on which the franchiser functions.

The franchiser provides the initial training and also assist the franchisee in hiring employees with the required expertise in the area (i.e. posting employment opportunities, collecting and analyzing CVs, performing interviews, and providing personnel training).

Franchisers normally want their franchisees to succeed. An unsuccessful franchisee signifies inability to pay royalties in addition to a bad image for the entire brand (from bad publicity of the unsuccessful franchisee). Thus, in many instances, franchisers execute their own market analysis and will help you select the finest location for your new small business.

Such market analysis helps them to spot the perfect location for establishing a new shop/office using statistical analysis of specific variables.

A franchise system has several advantages, and that's why it has been the dominating business-enterprise model over the last few years. While absolute statistics are not feasible, the majority of research that has been carried out demonstrates that the survival rate for franchise organisations is notably greater than for setting up a typical small business (some say in a franchise business-organisation the success rate can go up to 95% as compared to a survival rate of 20% for standard firms).

Franchisers commit an important part of their annual income on marketing (e.g. Television, Radio, and events) and frequently have a devoted marketing team to design, change, and put into action the corporate marketing strategy. This type of devoted marketing team with enough resources can readily defeat crisis situations whether they're brand-related (e.g. a flawed product) or general (e.g. economic crisis).

A franchise has also a number of disadvantages which should be taken into consideration.

1.CONTROL. As a franchisee you're not 100% the boss of your business organisation. You will need to stick to the operations manual furnished by the franchiser. Usually, you aren't allowed to make business decisions without obtaining an approval first. Such decisions may include selling the merchandise of a different dealer, selling new products, marketing the merchandise differently, or creating a custom discount policy. Yet such changes might be mandatory to be able to establish yourself in the local market.

2.COST. In most cases the cost of signing for a franchise network will be much higher than that of starting your own small business. While you could easily get started with your own home enterprise with a truly small amount of cash, becoming a franchisee necessitates that you have an initial capital at hand. Furthermore, as a franchisee you will have to pay the monthly or yearly royalties no matter whether you make a profit.

3.OPERATING EXPENSES. Franchisers may force you to purchase all products, hardware, and office accessories from them. You have to acquire these products or services (due to the contract you have signed with them) from the Franchiser, in spite of how much money it's charging. Often franchisers force the workforce of their franchisees to engage in regular training in specific costly training centres. This can greatly increase your operating expenses.

4.APPROVAL BEFORE SELLING. Buying and selling corporations is normal for entrepreneurs. Sorry to say, in franchising a franchisee must request an approval before selling the small business. The franchiser has to say yes to the new purchaser before the sale can take place. This substantially reduces the chances of locating a good opportunity to sell the business.

5.REPUTATION. As a franchisee your reputation is closely tied with and connected to any other franchisee on your network (this may be thousands). Bad news produced from any franchisee will affect your enterprise. Even worse, if the franchiser goes out of business chances are you'll wind up closing down your business organisation too.

This section introduces one leading set of franchising solutions. There are five parts to this set:

1.UNDERGROUND GUIDE TO FRANCHISING. This franchising guide gives you tips and useful information for franchising. It's compiled by folks who have franchised their current small business, and saves all the "fluff" and legal jargon that lots of persons might not comprehend in regards to franchising. It breaks down franchising and offers all of the required tools you need to franchise your business organisation.

2.PRO BUNDLE. It includes easy-to-customize, easy-to-understand templates for essential franchising documents, including a franchise disclosure document, franchise operations manual, franchise tools and development resources, in addition to the distinctive Underground Guide to Franchising. It contains everything you need to create a profitable franchise.

3.FRANCHISE OPERATIONS MANUAL. This is the holy grail of your franchise. It has information on every facet of your small business. This retail and service oriented guide makes it very easy for you to customize it.

4.FRANCHISE DISCLOSURE DOCUMENT. Among the most vital documents for your franchise is the Franchise Disclosure Document. The Franchise Disclosure Document (FDD) is a legal document that franchisers must provide to franchisees, as regulated by the Federal Trade Commission.

5.FRANCHISE TOOLS AND RESOURCES. This complete kit of franchise development tools includes very important information and resources that you would need to run a flourishing franchise. Must-have information. Every new franchiser shouldn't do without these crucial tools.
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Sorry to say, due to restrictions on space, we can't possibly cover the full details of the system announced here. But in case you are interested you could discover more about this system, which is highly recommended to all franchisers and franchisees, by clicking on this link:

http://www.bright-future-for-you.com/home-business/specific-recommendations/e-books/franchising.html

Please, also examine these INFORMATIVE HOME-BASED BUSINESS OPPORTUNITY REVIEWS:

http://www.bright-future-for-you.com/home-business/reviews.html

You may also learn about setting up, restarting, fixing, operating, or optimising your work-at-home business by visiting this home, Internet marketing, or online business opportunities site:

http://www.bright-future-for-you.com/work-at-home-business/

You do have a bright future in front of you. Yes, a bright future is waiting for you!

However helpless your situations are, a bright future awaits you. No matter how troubled you could be, peace stands on your path. No matter how nervous you are, bravery awaits you. Regardless how demoralised you could be, self-assurance awaits you.

No matter how much you cry, laughter is on your way. However offended you are, peace is coming to your spirit. Yes, you do have a bright future in advance of you!

Dr A A Agbormbai has been building up his home-based business since 2006 and has a wide range of accomplishments and experiences in this particular area. His articles bring his insights to you to guide you succeed online.

Formerly, Dr Agbormbai was a Senior Lecturer of Information Systems and Information Technology at a private university college in London. He's a PhD in Aerospace Engineering from Imperial College London, specialising in Spacecraft Aerodynamics. He has also worked as a Research Fellow in Fluid Dynamics.

Dr Agbormbai also contributes to nation building by analysing national problems through his blog posts, at political sites online, and providing incisive practical solutions to these problems. He's the world's top problem solving guru, having solved problems in such interdisciplinary areas as science, technology, enterprise, people, and national issues. These problems vary from academic to practical.

Keywords: franchising, franchise, franchises, franchising resources, franchising book, home-based business, home business enterprise, work at home business, business at home, enterprise at home, small business

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