Research for the most of the successful businesses has shown that a majority of them are franchises. In order for one to establish a business franchise they must license its trademark. The concept applies to any kind of products and services such as restaurants, retail, and beauty sector. Franchises are both popular and profitable due to the fact that they are already established businesses. The foundations are therefore laid, the groundwork done and the business ready to kick off with instant brand recognition and built-in marketing. Research on the market is vital before the establishment of any business venture. Doing a market study enables one to get to know how the business environment is for the services and products they intend to offer.
In the business world today, the most profitable and popular ventures are the restaurant franchises. In the United States of America, almost half of all the restaurants are part of a franchise business. A majority of the revenues generated from the hotel industry is obtained from them. When one walks in any street, or any mall, there is a high probability of finding one restaurant franchise or several of them. The fact that they are recession proof and have a wide variety of opportunities makes the restaurant franchise ventures be among the most profitable businesses. Fried chicken, burger, healthy eating franchises, in addition to other fast foods are some of the popular products and services offered by a majority of franchises. The franchising companies focus on satisfying their customers’ needs and wants to ensure they are making profits and also maintain the customer base.
Depending on one’s circumstances, there advantages and disadvantages of starting a restaurant franchise. Unlike a new start up where one has to begin everything from scratch, a restaurant franchise is usually developed. The head office for the franchise is responsible for marketing and d?cor thus giving it a head start. Guidance offered to those who are new in the venture ensures that they have the required skills. Start up costs for marketing and advertising need not be included since the business has a recognizable name. One disadvantage of the venture is that a lot of money has to paid for one to join the franchise. The head office for the franchise also requires that one pays loyalties to them.
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The loyalties paid covers for the advertisement and the publicity provided for. Another demerit is that, when one establishes the business under a franchise, they have to go by the d?cor and the menu dictated by the head office. The owner also does not have control of the sitting plan inside the business premises and also staff have to wear uniforms. The business is therefore not ideal for the creative people with themed concepts in mind.5 Takeaways That I Learned About Sales