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Nov
26

What is business franchise?

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You think to own and operate their own businesses (entrepreneurs), or the desire to develop a business franchise that you may have – then how do you make this challenge a success? With franchising, investors and small entrepreneurs will have an effective business plan based on the experience and knowledge of the Franchisor. This is not a “magic formula” for success, the franchisee Franchising offers a greater opportunity to achieve success in the long run by providing stability, security and lasting business to the owner, operators and investors.

Franchises are a form of business support. You will get a chance to learn from the experience of others by following the system has been developed by the most successful companies in the field of plumbing. As a franchisee you will receive good support from the Franchisor and other franchisee.

Meanwhile, according to Reitzel, Lyden, Roberts & Severance, franchise defined as a contract for intangible goods owned by someone (Franchisor) as the brand given to another person (franchisee) to use the items (brand) is on his business in accordance with an agreed territory .

Franchise was first started in America by the Singer Sewing Machine Company, manufacturer of Singer sewing machines in 1851. The pattern is then followed by the automotive company General Motors Industry who make sales of motor vehicles by pointing distributor franchise in 1898. Next, followed by companies in the U.S. soft drinks as a distribution channel in the U.S. and other countries. While in England the franchise was pioneered by J Lyons through his efforts Wimpy and the Golden Egg in 60’s decade.

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