How to Turn Your Business into a Franchise
Before addressing the main subject, let us have a look at the definition of a franchise again. A franchise business is a business that gives rights to an entrepreneur to use his trademark and to replicate his business model in another location for a franchise fee and pays royalty fees on the sales. Now, let us see the reasons, a businessman would want to sell or buy a franchise. A franchisee is willing to pay a fee to replicate the business because the original business model seems lucrative and the brand also has a significant brand value that can attract customers. A franchisor is willing to license the trademark to a franchisee because he can earn a lot from franchise fees and royalties. In these transactions, it is easy to see that the value is in the brand, brand identity, and the franchise business model. It implies that brand and brand value are very important to expand the franchise business. Whenever a business is ready for expansion, an initial introspection is needed to verify if there is enough brand value and also with respect to many other aspects.
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