What is the meaning of Franchising
Franchising is a strategy for companies that want to distribute their products and services more efficiently. Franchising requires low investment and for business owners, it may mean an opportunity to set up your own business.
One of the characteristics of franchising is the standardization of the presentation of products and services. The contract is also a very important factor for the franchises because, with the contract, they transfer the right trademark, customer care systems, administrative processes to the new negotiator.
The main advantage of franchising is that franchisees do not need to have a unique idea. They can use an idea that is already in the market. The disadvantage is that the franchises have a unique and standardized model, which allows the franchisees to put their personality and creativity, the franchisees will not find many possibilities to have an original business idea.
Read more about Why Franchising?
The franchise system is recognized as a consistent growth model. The big mistake that some brands make when deciding to expand through this system is to make it their own business.