Misconceptions pertaining to the franchising business
Franchising is one of the most popular modes of conducting business nowadays. However, certain misconceptions pertaining to the franchising business keeps the budding businessmen away from this popular method. Several individuals feel that they should have a prior knowledge and experience concerning the business. However, on the contrary, individuals can start a franchising business without prior experience.
Previous experience can certainly prove to be an added bonus to the individuals. However, the franchisor usually imparts their knowledge and provides training and support to the franchisee. Franchisors teach the intricate details pertaining to handling of business. The training provided by the franchisor ensures that the franchisee can handle the business within a certain time period. This is the case with the majority of large fast food and retail franchises.
The franchisee usually has to pay training or start up fees to the franchisor. The training session will begin from the basics and the franchisor will help the franchisee in the following departments:
- Selection of appropriate location for the firm
- Draft of a business plan
- Marketing techniques
- Negotiation of funding packages with lenders
- Technical support
- On-field training
Franchising has also a low risk value compared to the traditional methods of conducting business. However, it is advisable that the franchisee conducts a detailed study before arriving at a decision. It is evident from the above features of franchising that this method can yield the desired business results for budding businessmen.