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What is a franchise? Advantages and Disadvantages, Basic Terms

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Starting in the world of franchising Step by Step

Franchising is the consolidation and expansion of a business idea that has already been proven, that has prevailed and remained over time, constituting a brand with wide acceptance and preference for a variety of customers that have become part of your style and taste .

It is considered one of the best marketing strategies for the expansion of a business idea.

To be granted the franchise must be an agreement between the franchisor and franchisee in which the first granted rights that belong to him and he has built over time to the franchisee, the usufruct paying some rights and authority over the product .

Keywords: franchise, pros and cons, marketing strategy, business expansion.

100 most profitable franchises by Categories

Then the franchises most prominent and representative on business ideas, which divided according to the theme you want to work are presented. It is very important that each section in order to find seed money parea work with them.

Learn all about profitable businesses

Travel agencies franchises

You may have heard that the travel industry have passed the tests of the recession due to its continued growth despite tough economic times.

Therefore, the time to discover and invest in a travel agency franchise is now, because it will always be a successful business option. So the idea of ​​a franchise business travel agency is aimed at entrepreneurs who like to work with them public interested in traveling to different parts of the world.

When you start your own franchise travel agency will get important benefits such as commissions by selling all trips. However there may be some disadvantages, as they must pay between 2 and 3% by sales volume and should be aware that it takes time for profits and customer base. View category. You can see themmore profitable franchises travel agency here

cheap franchises

Franchise Food & Beverage

When people think about investing in a franchise, almost always your first thought is food. This reaction is considered natural considering that most franchise concepts are high-profile food-related.

It is a fact that there is a substantial list of franchises, some 119, that relate to food, and are represented in many individual places to eat.

These places range from vending machines, “carts” vehicles or even fast food, restaurants, stalls and others. The food and beverage franchises are aimed at entrepreneurs who have experience and taste for food and cooking.

Its biggest advantage is that you can gain important short-term with attractive recipe that surprised and pleasing to the public. However, it may be disadvantageous because signing the contract, the entrepreneur must undertake to fulfill following all procedures and operating methods imposed by the brand.You view the most profitable food and beverage franchises here.

Franchise Entertainment & Leisure

Franchises celebration, entertainment and leisure are very successful because people are constantly planning special occasions, holidays, and recreation.

So, these businesses are sought after and preferred by a variety of customers who want to have fun have fun, entertaining family and friends, but do not want to deal with all the stress that means planning a special event, entertainment or leisure.

If you like to plan events, decorating, welcome to organize this franchise is for you. Franchises of this kind have the advantage of providing significant gains if the franchisee is creative and committed to your business. It may be disadvantageous if the investment costs are high and there is no financial support for the hand of a bank.You view the most profitable entertainment and leisure franchises here.

Franchise Office and Computer Components

Today, with the use of new technologies in all areas, people need to invest in smart devices such as laptops, mobile phones, and other equipment that are no longer seen as a luxury but a necessity because the value they represent to solve important problems of study, work, safety, resourcefulness among others.

Buying a franchise in this sector is an important investment that can bring many economic benefits in the short and medium term. However, if not well known field is preferable not get to open a computer shop and you may not know what sells nor know advise clients, and also depend on another in this business can be risky.You view the most profitable franchises computer and office

Franchises Buy and Sell Gold and Metals

Usually these types of stores act as intermediaries and are a quick way to get money, why have gained much popularity. People at the time of an emergency can sell your gold jewelry, silver or other metal value and get cash immediately. The franchise provides significant gains in commissions for this item.

A disadvantage is that the buyer of gold, silver or other precious metal, will only benefit if the selling price to get in the future is greater than the purchase price.You view the most profitable franchises gold and metals.

Jewelery and Leather franchises

These franchises are characterized by business innovators who already have an image and a customer base that follow and preferred since they incorporate cutting-edge designs, including mixed material and conceptual proposals for a public with a high sense of fashion, taste and elegance.

Although it is a traditional business, this business has sought to expand the franchise mode to adapt to new formats and trends of today. A disadvantage of this business is that it is aimed at a select audience, which has high aesthetic tastes, with greater economic potential than other customer groups, allowing you buying jewelry.You view the most profitable franchises of jewelry and leather here.

Franchise Consulting, Real Estate and Legality

Currently all fields greater knowledge is required in almost to carry out activities, buying property or resolve legal issues, which is why, franchises and businesses in this area have been increasing. People flock more often for advice.

If you have experience in these fields, this business idea can bring you great profits and dividends. However, they may have some disadvantages associated with complex communication between networks, decision-making, commitments of the franchise, the benefits of point of sale and the relationship with the franchisor.You view the most profitable franchise consulting, inmboliaria and Legality here.

Franchises for English courses and tutoring

Recently, because many people work and have other occupations during the day, it is not possible to learn English, other languages ​​and other courses in person, so they flock to online courses as a possibility of development of the knowledge and skills for increased access to better jobs.

For the cluster of Spanish education field is one of the most important pillars, it has placed more than 3,000 new jobs. The advantage of this franchise is that if the investor is bilingual and knows the golf courses that promote networking, it is easier to conduct business and get profits if you do not know the subject.

The largest public towards where companies target children and adolescents, thus, 81% of franchises focuses its business to the public. Due to the ease of learning that show children from small and globalization, language schools and other courses have a better use of resources and more support.

One of the main disadvantages of this franchise is that control the performance of online students because usually, loneliness and lack of guidance from the student does leave the course is needed.

Another disadvantage is the quality and navigability of the courses, which must be very friendly to prevent problems students may have access to them.You view the most profitable franchises English courses and tutoring here.

Sports franchises Stores

Sports franchises are all considered very profitable, because today people are interested and motivated by maintaining physical fitness and body image. Because often this feature can be an advantage when applying for a job.

Employers often refuse to be left impressed by the physical appearance of the people they hire but more often this can be a plus when assigning a job. That is why more and more people access to gyms and seek to maintain weight training and fitness.

Therefore, a sports franchise can be a business idea high yield and profit. This franchise is aimed at those investors and entrepreneurs who like sports, fitness and training. It may be disadvantageous if the investment is very high and is not achieved in the short term to attract as many customers as possible and if not studied the environment where the gym is placed and there are other similar competing. You view the most profitable sports franchises stores here.

Franchising Hygiene and Pest Control

Franchises hygiene and cleanliness have high profitability because they have the obligation restaurants, food and beverage shops, storage facilities and food storage, to keep these free spaces microbes, rodents, cockroaches and other pests.

Similarly, cleaning and beautification, more boom are sought by people who want to have increasingly higher levels of hygiene and sanitation in the interior of homes, offices, workplaces, institutions, sports facilities and other companies in overall, because security is a requirement labor and domestic, in many laws and regulations.

Franchisees of these companies specialized in domestic support, laundry, dry cleaning, repair, disinfection, ventilation, organization, pest control by applying products that respect the environment, derive substantial benefits and profits because they are increasingly demanded and sought to solve these environmental problems.

A disadvantage is that a number of procedures and permits before opening, such is the case of the activity license, for what must submit a draft drawn up by a technician authorized by the professional association are required. In addition, an environmental license is required, and registration in the Official Register of Establishments and Services Pesticides / Biocides Autonomous Community.You view the most profitable franchises hygiene and pest control here.

franchises for Business Solutions

These are very specific franchises related software for SMEs, financial consulting and advisory services for innovative business ideas. These services are sought by companies to ensure you have the right software and a day to operate your business.

Moreover, they are services demanded by investors in the form of advice when there is interest in operating profit businesses that produce and can be handled easily and efficiently.

Those wishing to enter this business must have computer skills, economics, and management of SMEs. These franchises dominate the space of self-employment, getting up very successfully in the field of professional consulting services and advice.

A disadvantage of these franchises is that both large and small companies have a professional profile that must meet investment partners because they generally seek to consolidate its trademark and will not want to risk the closure of franchises because failure. So, the investor must meet the profile established by the company before applying for the purchase of the franchise.You view the most profitable franchises Business Solutions.

Toy Franchise Companies

Toy franchises in Spain, are considered an industry benchmark. This is because the products they offer are varied and of very high quality, offering a very careful design, with a strong trend in educational values ​​and also exceed the strictest quality controls the market, throughout the chain.

The sector is also marked by seasonality so there dates like Christmas year in which demand increases exponentially. This business is aimed at investors seeking safe space sales booming and constant movement.

One disadvantage of this franchise is that there are spaces in the year when sales are low, plus the unit profitability is lower and the benefits of exploiting the franchise between the franchisor and franchisees are spread, which does not happen If a toy store opens on its own.You view the most profitable franchises toy companies here.

Franchise Lenses and Optical Line

Franchises are profitable lenses and optical lenses business because trends are always sought after by a special public taste for style, branding and innovations in this field of business. It is a specific type of audience viewing glasses as a complement to dress and personality.

This business is advantageous for investors who like optics and innovation in lenses, frames, colors, designs. A disadvantage of it is that needs marketing strategies and if they are not included in entry fee will be an extra expense that will have the entrepreneur.You view the most profitable franchises Eyewear & Lenses here.

Franchise Marketing & Advertising

Today almost any business enterprise can do without marketing and advertising because it is isolated from the space business. Therefore, this aspect is essential if a business wants to excel and get the expected gains.

Hence, it is a niche market with ample opportunities for expansion and profitability.

It is aimed at entrepreneurs and IT professionals and network. A disadvantage may have the franchise marketing is whether who hires the service does not get the expected results in the time in which it was guaranteed that I would because, you run the risk of low gain reputation and be discarded by the public demanded by the service.

Since this is considered one of the most critical and delicate issues of managing a business center.

The problem can be further complicated when a parent company retains a percentage of royalties and franchise costs for this item. Furthermore all marketing and advertising strategy is based on three concepts, such as: Strategies attraction, expansion and customer retention.You view the most profitable franchises Marketing and Advertising here.

Franchise Medicine, Health and Aging

These franchises are expanding and offer great business opportunities with large profit because, today’s consumer is more interested and motivated health care aspects and aesthetics.

So, shares an interest with their closest relatives. Similarly, the elderly population is increasingly growing in different countries.

Hence health services are an opportunity for profitable business to invest. One of the advantages of these franchises is that because of the model, investors need not be concerned doctors, or have prior experience to be part of the industry.

However, a disadvantage of these is that you should be aware that although health franchise is purchased, the investor is not the owner of the mark and is limited and subject to the guidelines of the parent company leaving little leeway .You view the most profitable franchises of Health, Medicine and Geriatrics here.

Franchise Messaging and Online Payments

The outsourcing of this franchise is sued for almost all levels of the production chain. Since, offers delivery of letters, parcels, shipments at all levels so requires efficiency and quality of service that is provided.

Recently this franchise spaces have expanded service payments, remittances and money. Franchising can provide significant gains if you know manage and ensure high-quality service and security. Likewise, the costs of the service depend on the delivery time to destination, weight, volume and others.

A disadvantage of this franchise is the time that elapses between a package or shipment and arrival at destination is received, because it can take several days between the time the charge is selected to be scanned, checked, packed safely and shipped.

Then there is the destination process until it reaches the hands of the receiving client.You view the most profitable franchises Messaging and Online Payments.

Franchises Furniture and home solutions

This business aims to buying and selling furniture, objects, designs and solutions for decorating the home, institutions, offices, hotels, shops located in large cities, a wide demand and acceptance, with a broad customer base , wide recognition and prestige.

Investors franchisees receive extensive benefits of a market already consolidated brands created and worked great value and credibility. One disadvantage of these franchises may be the entrance fee payments, royalties, exclusivity agreements that may at some point limit diversification of the business.You view the most profitable franchises Furniture and Home Solutions here.

Hotels Franchises

With the financial crisis countries have established more market franchises hotels and hostels with more flexibility in management. Being a bit more manageable than the large hotels due to the consolidation of the brand through franchising. With franchising management methods, recognition, operability is obtained.

In this regard, franchises hotels are aimed at investors who like the challenge of being different, opting for design, comfort, innovation and dynamism. A disadvantage of the hotel franchise is that the franchisee is obliged to provide the quality of service indicated and established by the hotel brand and must keep all agreements reached by the hotel chain in the contract.You view the most profitable franchises hotels here.

Hairdressing and Beauty Franchises

These franchises are a good choice for economic independence and self-employment, broad demand due to the type of service they provide for the same is applied throughout the year, with high customer portfolios that have preference and loyalty by taste, style and fashion.

great knowledge is required to open a business of hairdressing, aesthetics and beauty, as long as the select professional staff that can provide a complete service of high quality and attention to the customer.

A disadvantage of this franchise is that those working in these centers of aesthetics and beauty should be persons of high professionalism, ethics and knowledge. Because it must be very secure when applying specific methods to avoid the risks of damage that may be detrimental to the prestige and brand carefully constructed by the company.You view the most profitable franchises Hairdressing and beauty here.

Restaurants and Food Franchise

These franchises are booming due to the new demands of increasingly informed consumers who want to eat healthy to care for the food, but prefer to do without the effort of having to spend time from work or other activities in the kitchen.

The franchise is aimed at entrepreneurs and investors who like food service, good food and dining. This brings broad business benefits and profits once you have a loyal customer portfolio and secure.

A disadvantage of it is that different franchisees must report regularly to the owner of the franchise, and it must ensure that all the different franchises operate in the same way. Taking a strict monitoring to ensure proper management and development of the site. If the franchisee does not fulfill the contract, it may be terminated and lose the investment.You view the most profitable franchises Restaurants and food here.

Franchise Vehicle Services

Franchises cars will always be booming and are a safe investment and high profitability due to continuous public is demanding all kinds of services for cars, especially in the maintenance moons, headlights, brakes, engine, injectors, cleaning the car, among others.

This investment is aimed at entrepreneurs who want to break into the self-employment and are willing to provide high quality service and attention to the customer. A disadvantage of the franchise are the investment costs can be quite high and require financial assistance from a bank or other entity.You view the most profitable franchises vehicle service here.

Franchise Supermarkets and Food Trade

These franchises are considered the most powerful and strong in the market, not only in this area but also the economy. They are stable franchises and there for all socioeconomic strata.

It is considered that 30% of the turnover of the franchisee food concentrates on such franchises, generating a high number of jobs.

They are directed to any entrepreneur or investor who is looking for alternatives to their professional work, as well as those who wish to diversify their investments.

A disadvantage of these franchises is a series of procedures and permits required for hygiene and food handling. Also related to inventory problems and operational space it represents. Increased personnel costs, disorientation of the client if it diversifies supply too because you can distort the mark and the initial image of the franchise, among others.You view the most profitable franchises supermarket and food trade.

Franchise Mobile Telephony and Telecommunications

Today have a smart mobile phone, a laptop, cable TV, among other technologies, it became part of the lifestyle, economy and employment to many people. Being without such devices may mean to a significant population mass isolation and delay. Therefore, franchises and mobile telecommunications are increasing and is a market high profitability and stability.

For these reasons mentioned above are becoming entrepreneurs and investors seeking to enter the market of mobile telephony and telecommunications. It is currently estimated that almost half of the dividends of the market is occupied by small and recent marks at the beginning of the century determinanban only 20% of the total.

One of the main innovations of the sector currently franchises telephony is mobile marketing reconditioned, which has doubled recently very successfully and is located at the level of buying new handsets. These franchises are aimed at professionals and investors who know the field of information technology and its broad advance.

The advantages of these franchises is that being a highly preferred by the public dynamic market, changing, innovative and profits are quite high. One of the most important disadvantages is the termination of mobile grants by operators.

Another disadvantage is that, currently, the client does not want a permanent contract and wants ties with any particular company. Therefore, the operator ceases to concentrate on attracting and makes customer loyalty. Forcing introduce new products and be more assertive with offers to the customer. View the most profitable franchises mobile and Telecommunications

Franchise Specialist Shops

These stores offer products and services to a very specific audience with specific lifestyles and tastes.

They gestate specialized projects with significant projections, such as selling comics, specialized products marijuana, florists, lighting and LED bulbs, vending machines, subcultures, among other curiosities. It should also draw attention to teach exploring the field of products emerging opportunity.

Similarly, these franchises can include buying and selling second-hand goods are a business area that has been growing worldwide. Growth and development of the consumer society, allows replacement of products still are useful.

Also advancing brands of sweets and gifts at a good pace, with the support of consolidated companies and business models that are categorized as investment contained.

This business of specialty stores is aimed at entrepreneurs who are interested in trading with products and services for a different audience. A disadvantage of this franchise is that it should be very clear that being specialty stores is a market that does not report profits in the short term and that is a market that can fluctuate ie can be both rise and slope.View the most profitable franchises specialized stores here

Basic terms of a Franchise

Let’s talk time itself which are generally in the franchise agreements cover the following terms used to understand which fall into each franchise

An assigned territory

When the franchise is sold to a given territory means that in the contract and agreement establishing detailed conditions under which the franchisor can not place another franchise or similar business that can compete with the franchise that has acquired the territory. It is established exclusivity of that space trading and customers purchased by the franchisee.

Duration of the agreement and franchise agreement

Generally, the time allotted for the business deal franchise is 10 years, but may vary depending on the type of business. Similarly, the duration of the franchise is estimated according to the initial investment of franchisees and the amount of time it takes them to return generate enough about the initial franchise investment and development obligations of the franchisee.

A franchise fee and total investment anticipated

It means that by investing in a franchise is possible to determine the required capital and will always be possible to estimate the value of the investment, with the possibility of obtaining funding safer.

It involves trademark, patent and use of signaling

The value of the trademark and service mark represent an important support for the franchisee therefore a brand that is strong and credible must be selected from all points of view including legal.

With the signing of the contract is expected royalties and other charges for use of the trademark.

In return, the franchisor obtained by the use of their trademark, royalties and other values ​​that compensate for the continued support to the franchisee, and the right has been granted to use consolidated system to do business and sell their products and services.

So when a franchise is acquired well known brand name and prestige proven, comprehensive benefits are obtained that are not available to the employer when you start a business from its inception.

Perhaps one of the most interesting aspects of a franchise is that it is a proven system of operation and training. New franchisees can avoid different mistakes that often make because the franchisor has perfected advance operations day to day through trial and error.