Franchising 101- what you absolutely need to know Written by Mansi gupta Franchising has made world look really small. The well known flavors are now not just restricted to a single town or city but can be enjoyed world wide. Otherwise it would only be a dream for somebody in Asia to wear fashion of Europe, for West to have delectable food of East etc. Globally as well as domestically system of franchising has something good for everyone. Franchising basically is taking of franchisee- authority or rights to sell products of some company. Most often it is only those companies who have an outstanding name in market that go for franchisee outlets. Like a tree expands and grows through its branches that also bear fruits, so do renowned companies enhance their business (sales) through franchising. Franchising gives them a good opportunity to explore every small town along with overseas markets. The process to take a franchisee is simple. All one needs to have is required security amount to purchase particular franchisee and a good place with an adequate business plan. The amount so taken by company is for a fixed tenure after which it needs to be revived in order to continue to sale company’s product. This security amount varies with kind (food, clothes, electronics…) and market value or goodwill of company. is for a fixed tenure after which it needs to be revived. Escalating goodwill of a company entails a surge in figures to purchase its franchisee. The companies besides amount are also very particular and cautious about area and size of workplace to open their franchisee outlet. While handing over their franchisee to someone nationally or internationally franchisors (parent company) educate him of their product, terms and conditions, policies and style of working. Most often these companies also give certain crucial tips to prop up sales of their product. Weekly or bi-weekly advertisements, hoardings and like are some of widely adopted measures for it. Once a company sells it franchisee to someone then it is solely onus and freewill of entrepreneur regarding methods he takes to promote his sales. However prices of all articles are set by parent company are not subject to modification by franchisee. Test Article Written by Smart Coder This is a summary Cont'd on page 2 ==>   ImproveHomeLife.com © 2005 Terms of Use