Friday, June 24, 2011

Franchise or start "under the roof»

Deductible - a win-win "one of the tools business, in which the franchisor (a large company, owner of the brand) transmits the franchisee (legal or natural person / IP) rights to sell or manufacture products or services, the franchisor. Lucky that satisfies the requirements of the franchisor, transferred all the secrets and technology business, the right to use the name of the company, its brand and qualified support on all issues. In turn, the franchisee is obliged to strictly follow the requirements of the business environment, as franchise - a peculiar mix of free enterprise and representative of a company. For the experience and knowledge will have a name (and even then not always) once to pay lump-sum payment and remit the monthly dues in the form of royalties. Franchise allows an entrepreneur with any start-up capital (even the most conservative) to begin an entirely new business from scratch in the shortest possible time. Today it is more than a hundred branches of the economy: from mini-department for the sale of accessories to giant factory. Franchise has stood the test of time: Having been in the early 19 th century, it has found adherents among such corporations as General Motors, "Singer," Coca-Cola, Pepsi "," McDonald's ", as well as a huge number of petrol stations, shops , catering. In Russia, the franchise is just getting its momentum and, as often happens, the legal framework is very behind foreign standards. The term "franchise" is not found so far no formal reflection, so that the legal relations between the parties for the most part governed by Chapter 45 of the Civil Code, "commercial concession," it raises a number of practical problems and legal sense, therefore, the more information about the franchise will be publicly available the better. This information can include: 1. The name of the franchisor. 2. Financial swelling franchisor. 3. The structure of the company. 4. A detailed description of selling franchises. 5. Dimensions of the lump-sum payment and royalties. 6. Regulation amending the treaty, as well as the dismissal of its action. 7. Information about other franchisees. 8. Volume of the additional services as training, marketing and accounting support, etc. The more expensive the deductible, the more services the franchisor provides, until the departure of specialists to train employees of the company, starting a business and guarantees for the exclusive rights of use of a brand in a city or region. However, such bonuses and increases the requirements for franchisees, among them the possession of its own working capital and availability of appropriate commercial real estate, and the ability to develop and promote the brand in the region. However, as it may sound paradoxical, buying a franchise can cost an individual entrepreneur is much cheaper than an independent business practices. It's simple: keep the staff accountant or lawyer, not to mention marketers or advertisers, often too much for the novice entrepreneur, exactly how and to apply to audit firms. Such a service included in monthly payment franchisor, relieves headaches novice businessman, because its services are always qualified help and the results of market research, advertising and printed materials and other pleasant things, searching for which do not always have the time or the imagination. As for the cost of the products or services - it may be several times cheaper than the ordinary wholesale purchase or supply directly from the manufacturer because franchisor offers discounts to its partners and has a weighty advantage in the procurement of goods directly from the manufacturer by volume or dealer agreements. Absolute advantage of a franchise is the fact that this is one of the most reliable and proven ways of entering international markets, even for the smallest businesses. Open even the most modest office with a crazy Italian clothing or oriental spices and the French cosmetics possible with minimum risk and maximum efficiency. In any other case, an individual entrepreneur falls chance to acquire a reputation and trust of potential buyers for such a short time, but through the use of high-profile and well-established brand with a worldwide reputation. Franchise is good for those who have already grown from a small business, but while not risking to go in it alone. If you are unsure whether to develop its global, but it is doubtful whether a successful concept, then just use the franchisor's experience and contacts to guarantee timely delivery and fast learning the subtleties of a particular business. Whatever the franchise's opponents, it is this form of business to address these pressing issues of deficits required information. For all its undeniable advantages of franchising is a huge minus - the restriction of freedom of the entrepreneur in any decision-making: from the corporate style, ending with a choice of suppliers and partners. Franchisor established very strict rules for not tolerate changes to your 'taste and color, but for creative, energetic, enterprising and entrepreneurial businesses are sometimes worse than any bankruptcy! Do not think that working with the franchise boring and uninteresting - it's not so easy to determine whether it is you work "under the roof of" franchisor or carry out activities at your own risk: something, and it is consistent with the status of an individual entrepreneur, so the choice is yours! Deductible - it is a good asset in your business

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