Almost everyone is aware of the tremendous boom in franchising that has occurred in the world during the last twenty years. But, why has it been so successful, and how does it work? Most understand it as a means for independent entrepreneurs to go into business for themselves in order to distribute various goods or services. There is no definition that holds true in all cases.
However, in general terms, franchising is a method of distribution or marketing in which a company (the "Franchisor") grants by contract to an individual, or other company (the "Franchisee") the right to carry on a business in a prescribed way, in a particular location or area, for a specified period. The Franchisee is licensed to sell a product or service to the public. In return, the Franchisor receives a royalty for support and expertise given under a common name.
The strong and growing popularity of franchising around the world has resulted from the built-in advantages that franchises enjoy over the newly started independent business. Some of these advantages are:
* A recognizable brand name
* Professional assistance in demographic studies and market analysis, financial planning, employee training, start-up and ongoing support
* Head office support and assistance in such areas as marketing and sales, research, accounting systems, etc.
* Full publication design and output
Indeed, statistics show that while an independently owned and operated business stands a seventy to eighty percent chance of failure in the first two years, a newly opened franchise business has over an eighty percent chance of success during the same period.
You owe it to yourself to thoroughly investigate any business opportunity that comes along. We will be more than happy to spend whatever time is required to review all the facts regarding franchising in general and a SNAP Franchise opportunity in particular.
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