What is a Franchise Business.

In this article we will discuss on Franchise Business. What is a Franchise - A franchise is an Authorization or a right granted to an individual or group to market a company's goods or services within a certain territory or location. Like CITC - Chandigarh Institute of Technology & Consultancy is offering Franchise to Provide Computer Education throughout India. By taking franchise, the particular Person or Firm is legally Authorized to run the business or Services of that Firm or Company. Simply, a franchise business is a method a company uses to distribute its products or services through retail outlets owned by independent, third party operators. The independent operator does business using the marketing methods, trademarked goods and services and the 'goodwill' and name recognition developed by the company. In exchange, the independent operator pays an initial fee and royalties to the owner of the franchise.

The company that grants the independent operator the right to distribute its trademarks, products, or techniques is known as the franchiser. The independent, third party business person distributing the franchiser's products or services through retail or service outlets is called the franchisee. There are many different types of franchises. Many people associate only fast food businesses with franchising. In fact, there are over 120 different types of franchise businesses available today, including automotive, cleaning & maintenance, health & fitness, financial services, and pet-related franchises, and many more.

If we look the history of Franchising system, Franchising began back in the 1850's when Isaac Singer invented the sewing machine. In order to distribute his machines outside of his geographical area, and also provide training to customers, Singer began selling licenses to entrepreneurs in different parts of the country. In 1955 Ray Kroc took over a small chain of food franchises and built it into today's most successful fast food franchise in the world, now known as McDonald's. McDonald's currently has the most franchise units worldwide of any franchise system.

To help you evaluate whether owning a franchise is right for you, we are making efforts to help you to understand your obligations as a franchise owner, how to shop for franchise opportunities, and how to ask the right questions before you invest. How can a Franchise become beneficial for any one ?

A franchise typically enables you, the investor or 'franchisee,' to operate a business. By paying a franchise fee, which may cost several thousand dollars, you are given a format or system developed by the company ('franchisor'), the right to use the franchisor's name for a limited time, and assistance. For example, the franchisor may help you find a location for your outlet; provide initial training and an operating manual; and advise you on management, marketing, or personnel. Some franchisors offer ongoing support such as monthly newsletters, a toll free 800 telephone number for technical assistance, and periodic workshops or seminars.

While buying a franchise may reduce your investment risk by enabling you to associate with an established company, it can be costly. You also may be required to relinquish significant control over your business, while taking on contractual obligations with the franchisor. When you have planned to take any franchise, after getting review on its benefits, thoroughly read & understand the terms & Conditions of the Company as well as the Agreement points. Then you can easily proceed for your business or Services. We hope , this article will surely help you in getting the right Direction for opting the right business.