Posts Tagged ‘Franchises’
Fundamentally there are two types of franchises. They are Product distribution franchises and Business format franchises. The most significant portion of the product distribution format is that the product itself is manufactured by the franchisor. Many times some sort of pre-sell preparation is necessary on the franchisee end before their sale.
One more important difference between these two types is that in product distribution type of franchises, the franchisor licenses their logo and trademark to the franchisees however he/she does not provide the complete system necessary to run the business successfully. However in the business format type the total system is supplied by the franchisor for running the business. Nowadays most of the franchises are of the type business format franchises. If you look at United States, almost 80% of the totals of 770,000 franchise businesses are of the business format franchise type. Lets have a close look at these two types of franchises.
Product Distribution Franchises: In this type of franchises, the franchisees sell manufactured products to the franchisor. This type of business can often be found in industries such as automobile, drinks and automobile accessories. These franchises are similar to the supplier-dealer kind of relationships. However in the product distribution franchises, franchisee has the benefit of getting more services from franchisor than compared to what dealers will get from their suppliers.
Franchises are available for budding entrepreneurs wanting to enter a wide range of sectors. The domiciliary care market is one such sector, and the Caremark franchise opportunity has been available since 2005. Kevin Lewis, who began the empire in West Sussex, offered bespoke healthcare to patients in the safety of their own homes. Now, over 60 regions benefit from the Caremark model, a business that retains close relationships with social services and other welfare organisations to cater to the needs of the people it serves.
Prospective franchisees are being offered the chance to provide services under the well-respected Caremark brand. The brand offers training courses to interested entrepreneurs, the first of which is booked up quickly due to insatiable demand. In addition to the education and experience offered to those recruited, the creation of new headquarters with dedicated franchise managers allows continuous support to be given to franchisees as and when it is required.
The Caremark venture, which includes well-established healthcare being offered to the elderly, enables franchisees to work in areas of the care market which are hugely underserved.
PRIDE SYSTEMS is looking for Enthusiastic People to become franchisees and start working for themselves under an already well established name that is synonymous with quality and service in the IT sector.
When considering life as an entrepreneur, it is important to understand the differences between a franchise, business opportunity and a start-up business. There are, of course, advantages and disadvantages to each style of business. In this article we will discuss the advantages and disadvantages of business opportunities and the difference between a franchise and business opportunity.
BUSINESS OPPORTUNITY:
All franchises are considered business opportunities, but not all business opportunities are franchises. A business opportunity involves the sale or lease of another’s product or service that will enable the purchaser to establish a business. Other types of business opportunities besides franchises include
The beauty of buying a decent franchise is that there are so many great business ideas to choose from. Home based entrepreneurs can establish their own business in a range of sectors using the Internet as a platform. While this has given rise to a number of success stories, the practise is not without its pitfalls, which is why it is important to be aware of franchise scams.
With so many franchise opportunities available, it’s important to do your homework and exercise common sense. If something sounds too good to be true – perhaps the franchisor is claiming you will receive huge profits in a short space of time – it most probably is. Essentially, the success to buying a decent franchise is in the hard work and prior research, while you shouldn’t expect to make wads of cash from the off.
Once you’ve identified your preferred industry or sector, you’ll need to choose a potential franchisor.
Do some online research on both the industry and the brand. What’s their background and what is their management structure? Does it have much competition from franchised and non franchised rivals?
Where Do You Get Franchise Information?
The more I look into the Franchise Industry, the more it is apparent that most Information is geared around selling franchises. The Business Franchise is exactly that – big business.
If you do a search on Google on ‘franchise’ or ‘franchise information’ then you are likely to be presented with thousands of pages of franchise advertisers, franchise consultants, franchise marketplace websites and possible a franchise association.
I have been seriously researching the industry for a number of years now and the number of good information sources I have found are few and far between. There are a number of good books on Franchising on amazon and I strongly suggest that if you are seriously examining buying a franchise then you read as many as you can. You can never do enough research.
I have just come off the back of two days solid of research on google on franchises and I have yet to find any information sites that are not in some way ‘sponsored’ or funded by franchises or consultants.
Why is this? Do you know any?