Franchising is a type of business that involves the sale of a business, product or service. It is usually associated with a specific geographical area.
A franchisor is an established business owner who sells a license to another person or company, often to use the business name and business model. Some franchisors provide financial assistance, training and advertising support.
Franchisees must adhere to the guidelines of the parent company. If the franchisee does not, they could face mismanagement which may lead to financial problems. In addition, mismanagement can cause fees to increase.
The franchise industry has come under fire for a number of reasons. Opponents argue that it can be harmful to the economy because of the way revenues are distributed. They also say that chains detract from the aesthetics of a community.
Critics also say that the low wages paid to franchise employees make it difficult for owners to retain quality workers. These employees must be part-time workers who do not receive benefits.
Franchises are also popular among women. Many of the women who work in franchises have discovered the benefits of running their own businesses.
Franchises also have a high return on investment. Most of the new franchises survive the first three years.
In order to start a franchise, you must first find out if you can obtain the funds needed. This can be done through personal funds or traditional sources.
You can also rely on the help of family and friends. But you should also check if your local laws and regulations allow you to operate the franchise.