Franchising Basics
What is Franchising?
Franchising is a method of doing business. The franchisor or franchise system owns the right to the name or trademark of the business. The franchisee purchases the right to use the trademark and system of business. You are purchasing someone else’s expertise, expenses, and method of doing business.
Why Buy a Franchise?
- EXPERIENCE OF THE FRANCHISOR– You are purchasing years of experience and proven methods of the franchise system. In any new business much time and money is spent in trial and error. A proven franchise eliminates many start up problems.
- TRAINING– Training of the proven system prepares you for ALL facets of the business. As your business grows and you embark upon new challenges the franchisor can help you through those struggles saving you lots of time and money in trial and error.
- BUYING POWER– A franchise system has buying power you wouldn’t have in a non-franchised small business.
- ADVERTISING– The trial and error of marketing tactics that work and don’t work have already been worked through when you purchase a franchise. If you follow the marketing system you should be successful.
Questions to Ask Myself Before Becoming a Franchise Owner
- ARE YOU WILLING TO FOLLOW A SYSTEM?
If you have difficulty following directions or dislike working in a system franchising would be very frustrating for you. - ARE YOU WILLING TO TAKE A RISK?
There is less risk with a franchise than a start up independent business. Whether you succeed or fail still depends on you! - ARE YOU WILLING TO ENTER A LONG TERM AGREEMENT?
The franchise agreement is a 10 year relationship. It is a binding legal document. Get to know the corporate staff to get a feel for your comfort level in working with them. Talk with other franchisees about their relationship with corporate. - WHAT ARE YOUR EXPECTATIONS?
Success doesn’t come instantly with the franchise agreement. It requires hard work and a lot of effort. Get a realistic picture from corporate as well as other franchisees on what to expect from your Wood Re New experience.
