Saturday, 18 August 2018 12:04

Franchises - where to look for opportunities

It would seem that the economy is already saturated with companies from various industries. However, new entrepreneurs still establish businesses every day. Does everyone have an original business idea? Of course not. One of the solutions which enables young entrepreneurs to spread their wings are franchises. But what exactly are they and in what industries can they be found?

 

What is a franchise?

A franchise is a type of contract which is concluded two independent economic entities called the franchisor and the franchisee. This is a particularly beneficial arrangement for those who want to enter the market in a given industry, but do not have an innovative idea or are afraid that the new brand will not attract the attention of potential customers.

As part of such an agreement, the franchisor gives the franchisee the opportunity to use his logo and reputation, and provides him with the knowledge necessary to run a business. In return, the franchisee agrees to pay the license fee and transfer an agreed upon part of the profits from sales to the franchisor.

In which industries can franchises be found?

There are virtually no restrictions here. However, in some industries franchises are more popular and it’s possible to quickly find an interesting offer, while in others it may be a bit harder.

Franchises are most often associated with service and catering businesses. And there is nothing strange about that. The largest restaurant chains or fast food chains which operate on a franchise basis are known all over the world. Franchising is also becoming increasingly popular in the beauty and fitness industry.

Interestingly, more and more store chains from various industries decide to create franchise agreements. These usually include large department stores, but you can also find highly specialised stores offering a narrow range of products. You can read more about the areas in which it’s possible to open a shop under a franchise agreement at https://www.pointfranchise.co.uk/I-95-retail-stores-franchise/

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