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Understand The Finer Details Of A Franchise Resale Strategy

Understand The Finer Details Of A Franchise Resale Strategy

Every franchisor who is new to the franchise business is interested in addressing a potential franchisee candidate. He strongly believes in his business model and looks for people that are enthused by his business model and attributes of the brand. Persons that have managerial skills but are reluctant to dive head-on into entrepreneurship often test themselves by getting involved in a franchise. They participate in all the activities with much energy and interest. They also employ all their past learnings to scrutinize various aspects of the model. With the passage of time, the new entrepreneurs get busy with the fixed format of business and continue to run it successfully. But soon they start realizing that a franchisor puts many constraints on them and they hardly have any freedom to make decisions. When they get used to business as usual, the routine starts to bore them. This is especially true of people with a strong spirit of entrepreneurship. They start losing motivation to continually work on improving the business.

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What Should A Franchisor And Franchisee Know About Franchise Resale

What Should A Franchisor And Franchisee Know About Franchise Resale

A businessman that has a good idea starts his own business with a big or small scale of operations depending on the financial ability of the entrepreneur. With a number of trial and errors, the right product or service is developed and marketed to earn profits. Eventually, a franchisor makes the decision to turn his establishment into a franchise business. While it is relatively easier to see the popularity of a franchise and a steady demand for its franchise units, there is little clarity on the resale of franchise businesses. In fact, the resale of the franchise has been a taboo till the recent past. The negativity associated with it is such that most franchisors completely avoid the issue. It was looked upon as a failure and that nothing could be done in it. Now that some of the old franchise businesses have reached a certain level of saturation, the transfer of franchise agreement is looked upon in a new light. There is still a lot of old negativity but some positives are being noticed and discussed by experts on the franchise forums.

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72 views • 5 slides

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