A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, which pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.
Franchises offer the independence of small business ownership supported by the benefits of a big business network. You don’t necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model. Franchises have a higher rate of success than start-up businesses. You may find it easier to secure finance for a franchise. It may cost less to buy a franchise than start your own business of the same type. Franchises often have an established reputation and image, proven management and work practices, access to national advertising and ongoing support.
Private equity firms have taken note of the opportunities in franchising and buying it. They typically pump in capital to expedite growth and then sell their share of the company at a profit down the road – earning money for investors in the meantime.
Established franchise brands with limited market availability have plenty of options when it comes to strategic growth. We help you locating these options.
Franchise marketing is a widely accepted strategy. Identifying your target market helps you calibrate your marketing strategy based on appealing to your potential buyers.