What is Franchise Business
Franchise business is a business that brings a system called “Franchise System” to use in the management and expand the business. The “Franchise System” has long been developed. The p\main principle of franchise system comprises of 2 parties—the owner or ‘Franchisor and the buyer or ‘Franchisee.’ The Franchisor of any kind of business must have the following factors:-
• Know-how. Know-how or body of knowledge means that the business owner has arranged the knowledge of the business in the form that can be transferred to ‘Franchisee’ who has no experience in the business so they can do the business the same as the owner has done.
• Team support. Team support is a supporting team which is the crucial factor which can forecast the sustainability of that franchise business. Without strong supporting team, the franchise cannot retain the same standard of the business.
• Brand. Brand or trade mark is a type of product manufactured by a particular company. Brand will tell us what the difference between that product and others is.
• The well- known examples of franchise business are Mcdonal, KFC, The Pizza etc. Franchise system working process both inside and outside organization is clearly designed and the same standard is set to be followed so the product and service of any offices will be the same.
• If the business owner wants to develop his business to franchise system, he has to set up clear process and standard of product and service. If not, franchise system will fail.