Franchising without investments: is it real?
In order to organize a high-quality and fastown business, usually not only certain skills and knowledge are required, but also significant financial resources. Now start-up entrepreneurs have two ways of organizing their own
Among the advantages, first of all, followsnote the possibility of significant savings in money to start a business. The company that sells the franchise is also interested in positive results, because it is about its credibility. Representatives franchisor necessarily consult a newcomer on the correct and effective use of materials and equipment, working with suppliers, the sales system and other issues. Due to the fact that the development of the company is due to the attraction of foreign resources, changes in profits in its balance sheet are very fast compared to other methods of doing business. Plus, everything, you can earn without investment, and at the expense of using a developed trade mark. This includes its marketing schemes and advertising. At the same time, the consumer of services and goods often has no idea who is their supplier.
There are some drawbacks here. If you understand well, then we can conclude that in principle franchising without investment is impossible. How not to twist, but for the franchise itself will have to pay. In addition, an entrepreneur who has decided to follow a partnership way of doing business becomes a hostage to the franchisor in terms of a limited choice of his own development strategy. As practice shows, the franchise purchase agreement is signed for a very long time, therefore it is very difficult to stop cooperation. If an entrepreneur gets bored with doing business that way, and he decides to stop fulfilling his obligations, he will be sanctioned.
In spite of everything, franchising without investmentsnow enjoys great popularity in many world states. As the statistical data of American researchers testify, in the USA during the first year of activity, on average, three out of four established enterprises fall apart. At the same time, more than 85 percent of companies operating under the franchise system, necessarily survive and feel very well. Theoretically, for a franchise, you can not pay anything at all and take it for free. However, as practice shows, such an asset can hardly be called valuable, since such companies are practically not viable. An enterprise that can not sell its business can hardly sell products. A vivid example of such an idea of a business without investments is network marketing, which hardly brings the desired revenues.