Definition of Franchise – What is a Franchise and is it the Best Business Opportunity?
In your search for the perfect entrepreneurial opportunity, you may have wondered about the possibility of buying a franchise. You may also be curious as to the exact definition of franchise. So what exactly is a franchise and is it the best business opportunity for you?
Definition of Franchise:
According to the Free Online Dictionary, the definition of franchise is a privilege or right officially granted to a person or group by a government, or an authorization granted to someone to sell or distribute a company’s goods or services in a certain area. A Franchise is also a business or group of businesses established or operated under such supervision or a brand name under which a series of products is released. Some common example’s of popular franchise opportunities would include McDonald’s, Starbucks, Subway, Pizza Hut and the UPS Store.
Types of Franchises:
Franchises do not only include fast food business. There are actually more than 120 different kinds of franchises available including:
– Health and Fitness
– Financial Services
– Pet related etc…
How a Franchise works:
A person who buys and runs a franchise is called the “franchisee”, and the person he/she purchases the franchise from is called the “franchisor.” In order to run a franchise, the franchisee must follow certain rules and guidelines that have been set up by the franchisor, as well as pay an ongoing royalty fee and up-front franchise fee to the franchisor.
Is a Franchise the Best Business Opportunity?
When taking into account the significant disadvantages that a franchise presents, many people have decided that a franchise is, in fact, not the best business opportunity for them. If you are looking for a way to start your own business but don’t want the restrictions and huge financial investment that a franchise demands, you might want to consider the advantages of starting your own online business instead.
An online business opportunity is less restrictive and typically costs much less ($200,000 or more vs. $2,000 or less!). Online businesses don’t require the ongoing and expensive royalty fees, which is another of the huge drawbacks that usually cause most people to steer clear of a franchise. Online businesses are much more convenient. All you really need is an internet connection to make it work, and they are extremely portable. You can take your business anywhere that you have internet connection, whether that be home or abroad on a fabulous and exotic vacation! Unlike a franchise, with an online business you have no inventory requirements because everything is done online. You also have no specific staff or spending amount required, so you get to decide on your own level of growth and success and answer to no one but yourself!
A franchise is a legitimate and acceptable business choice, but from my opinion and experience, the online marketing industry is a hugely successful and superior option that is taking over the entrepreneurial world. Come and join us!