At some point it will have been through the mind of a good number of people to buy a franchise of some service that is synonymous to potentiate what is invested, and that sound easy to do if you think of such reputable franchises even worldwide, but it is far from being easy.
That business system represents simplicity in a franchise constitution because its rules provides some certainty compared to independent entrepreneurship.
But for the difficult to become something simple (but no easy), you have to understand its essence in function and definition.
When you are going to buy the franchise you must understand that the franchisor gives the franchisee the right to develop, manage or exploit an already accredited product or service, including the basic knowledge to carry the business in the correct path.
What is why there are 4 key elements to consider when negotiating to acquire a franchise:
1. Franchisor: legal entity that gives its trademark, forms of work, gained experience and the knowledge applied and learned in exchange of monetary payment.
2. Franchisee: natural o legal person who will start to do business with a franchise brand that will acquire, by getting a franchisee´s goodwill in an exclusive place, having full assistance in the duration of the partnership.
3. Contract: that document will formalize partnership between both parts considering franchisor´s authorization to the franchisee to be represented under its name and commercialize its products or services by a specific and experimented labor system in exchange for a pre-defined remuneration. But it also forces the franchisee to follow the rules, systems and procedures that the franchisor demands.
4. Know How: those are the manuals and documents that the franchisor delivers when the business society is finally concretized. It contains knowledge, technical, financial and administrative experience that the franchise will require for its proper functioning.
The transition to being a franchisee leads the person to learnd from a world that can be easy to understand, and at MVP Business Strategy we can provide you with the necessary help to achieve it. Come closer and know more from us.
Source: https://www.entrepreneur.com/article/263721
2. Franchisee: natural o legal person who will start to do business with a franchise brand that will acquire, by getting a franchisee´s goodwill in an exclusive place, having full assistance in the duration of the partnership.
3. Contract: that document will formalize partnership between both parts considering franchisor´s authorization to the franchisee to be represented under its name and commercialize its products or services by a specific and experimented labor system in exchange for a pre-defined remuneration. But it also forces the franchisee to follow the rules, systems and procedures that the franchisor demands.
4. Know How: those are the manuals and documents that the franchisor delivers when the business society is finally concretized. It contains knowledge, technical, financial and administrative experience that the franchise will require for its proper functioning.
The transition to being a franchisee leads the person to learnd from a world that can be easy to understand, and at MVP Business Strategy we can provide you with the necessary help to achieve it. Come closer and know more from us.
Source: https://www.entrepreneur.com/article/263721
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