What is a Franchise?

Before considering buying a franchise or Transforming your business into a franchise, let’s first discuss what a franchise actually is.

A privilege granted or sold, such as to use a name or to sell products or services. In its simplest terms, a franchise is a license from the owner of a trademark or Trade Name permitting another to sell a product or service under that name or mark. More broadly stated, a franchise has evolved into an elaborate agreement under which the franchisee undertakes to conduct a business or sell a product or service in accordance with methods and procedures prescribed by the franchisor, and the franchisor undertakes to assist the franchisee through advertising, promotion, and other advisory services.

The essence of a franchise is in the replication of an idea, method, product, delivery, or service.

The advantage to an entrepreneur of buying a franchise is joining a concept that has already “figured it out”. Having the recipe and ongoing support increases, sometimes drastically, your ability to be successful.

As a franchisor, you need to ask yourself one question: “Is there value to others in duplication the business model that I have created?” If the answer is yes, you may be the perfect candidate to Transform your business into a franchise.