Franchise
Explore a new market?
If you have a smooth-running business and are considering business expansion, franchise might be one of the best ways to help you broaden your business landscape. This business model allows you to give your brand to franchisee and is suitable for various industries. You can quickly fill gaps in the market with a cost-effective strategy, leaving your business footprint overseas.
Franchise will permit franchisee to operate business under your established business model. They will use your brand (including intellectual property, trademarks, or patents) to sell your products or services. In return, franchisee will be paying you certain fees. Usually, the fees include an amount of the initial franchise fee. After their businesses start to run, you may receive a percentage of the profits they earn from sales.
You can also help new entrepreneur to manage their business operation. By supporting on technology, professional knowledge and staff training, you can charge fees for these services to save your costs.
Because franchisees independently running business, you need to pay attention on how they use your brand. Upholding a good standard for products and services is important, which is to prevent any reputational damage caused by poor management.
Starting your business?
If you wish to start your own business with lower risk and would like explore your passion in a specific industry, joining a franchise can be a great choice.
The booming of franchise can be seen in various industries, from a fast-food restaurant, a café to a dessert shop. After all, why can say no to tasty food? The increasing demand on service market such as hotels, retails, postal, pet and tourism. This will be a great opportunity to make your business dreams come true.
One of the biggest advantages of franchise are that the risk of business failure is much lower than set up a new business from scratch. The market has already proven the effectiveness of the business model, and the brand has a solid reputation. You have the opportunity to operate with some freedom while leveraging the established brand's positive reputation and marketing campaigns.
No matter what stage you are currently at, a comprehensive written franchise agreement is crucial to safely start your business journey. A typical franchise agreement usually includes:
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The franchise type, duration and area covered
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Franchise fees
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Authorise to use intellectual property, trademarks, or patents
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Restrictions on franchisee
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Staff training, technology and other support
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What if one party wants to end the agreement early
​Undoubtfully, the market is always changing, and consumers’ preference can be varied in different counties. Market due diligence is necessary to save time and costs. It is wise to seek professional business advice before getting start and making your business dreams come true.
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