April 20, 2023
A couple of years ago, Dessi Cuppa was a sensation and chaps were scrambling to end their thirst through Dessi Cuppa. In fact, it was made it to be possible through the concept of the franchise ownership model, and thus popular brands such as KFC, and Fabindia, to name a few, were available easily in almost cities.
The franchise model is considered to be the best investment model through which a brand could be served by a franchisee with the consent of its owner or franchisor.
In franchise business economics, both stakeholders are responsible for making the brand successful. In the beginning, the franchisor provides all sorts of business tips, training, marketing tips, product development, etc for the franchisor and supports him with modern career tips. As the franchisee runs the business individually they get support from the franchisor. It is mutually beneficial too. When a new branch sets up by a franchisee, it is a sort of business expansion to a new location without much effort.
There are mainly four types of Franchisee ownership:
A franchisee and a franchisor agree on a legal binding before setting up a franchise between them. The agreement mentions the below sections that you need to address and understand.
The main advantage of setting up a franchise business is the right to utilize known trademarks. The trademark section contains the list of trademarks and the logos that the franchise used. Keep this in mind while signing your agreement:
The section contains the areas where the franchisees have a nod to set up a branch. It is to be confirmed whether you have the right to work in that specific area.
The section contains information about the length of the agreement. Keep in mind these points while you proceed:
The section contains all the information with regard to mandatory fees related to buying the franchise. Keep in mind the points regarding the sections:
The section contains all the duties and responsibilities that the franchisor is required to follow. These include:
The section contains information on the limitations imposed on the offered products and services. The restrictions are :
The section contains all the information regarding the renewal, transfer, and termination of the agreement. It includes:
These are the basic guidelines to keep in mind when deciding to go with a franchise business model. The information shared here can help you to get an edge over the franchise works and lead you to a successful franchise business.