Business franchises

Every thing in this world changes with time. Either it?s the rule of a ruler, life of a person, taste of the society and even the business tactics of a businessperson. During the Industrial revolution, the concept that prevailed was as follows.

SUPPLY WILL CREATE ITS OWN DEMAND.

The depression of the 1930?s proved this concept to be wrong. A lot of finished goods went wasted in the factory premises. Many traders of that time had to commit a suicide. After a decade the depression was completely over various steps were being taken to avoid such kind of situation in near future. A number of business techniques and tactics were introduced to the businessman. With increase in Perfect competition and decrease in Margins, many business houses, which were working on old principles of doing business, started getting shut down. Then it was concluded as follows.

CHANGES ARE UNAVOIDABLE IN SOCIETY, AND A BUSINESS WHICH CHANGES WITH ENVIROMENT SURVIVES.

Thus it was confirmed that if a business wants to survive than it has to change with the changing demands of the people. Thus it becomes very compulsory for a business to grow and expand in all the directions so as to become strong enough to overcome the winds of changes. Take for instance in the case of eatables. Earlier there were small restaurants in a city. Then the time changed and people preferred the national brands. This led to opening of restaurants of a definite brand name in the whole country. Now again the changes are taking place, and this time people prefer to eat at the world class level restaurants, which have earned a good quality name in the whole world.

Meaning of Business Franchisee

A Franchisee is the branch of a particular business brand, which can be dealing with clothes, utensils, chain of restaurants etc, whose area of operation is spread in the whole world and the brand name itself is popular among the masses. Various Business Brand openings their franchisee in different parts of the world is as follows.

McDonalds. (Chain of restaurants.) Nike and UCB or United colors of Benetton. (Marketing of clothes, shoes and other wearing item.) Borosil (Utensils.) Honda. (Car, Two-wheeler like scooter or Bike, and now electronic gadgets.) Domino?s and Pizza hut. (Pizzas of different variety.) and many more

Types and requirements of Business Franchisee

The Business franchisee can be of various types as the case may be. For instance, if a business franchisee deals with selling their brand of pizza, burgers etc, than in that case the company will have to open its group of restaurants around the globe in association with the people interested in doing business with them. In other case, if a company is selling clothes of its brand name, than the company will have to open its retail outlets with the existing sellers. Further in case a company is making car, bike or any other electronic goods. Then in that case the company will have to contact the dealers of the country so that they can display their brand items and sell them and in return they may earn their commission. Thus it is clear that the business franchisee can be of opening outlets of the company, or just selling the products of the definite company.

The requirement for opening a franchisee business for a person can be Workspace, Area of operation, early stage investments, capital requirements and any other need that a company may feel necessary for better return from their business. In case of inability of a person to fulfill all the requirements, the company can reject the offer of opening the franchisee in that area by that person. It can also give the chance to the other person whom they find capable of fulfilling their requirements and save their reputation and brand name from failure. There are always some merits or demerits of a business and in case of franchisee business the number can be more or less than expected. Following are some pointed out.

Merits of Business Franchisee

A number of merits of Business Franchisee are been proven. Following are the few.

A world class level product is available to the general public. A world class level service is given to the customers. A neat and clean sitting area is offered to the customers. A well-known brand is offered to the public and that too at their doorsteps. Advertising makes the products so popular in the general public that they don?t need a separate introduction while offering. Better returns in comparison to the other similar businesses in the market. World level technical know how comes to the country. New products are offered to the public after some intervals. Cheap and healthy products are the specialty of the franchisee business. Credibility or after sale service is better performed than the usual local businesses.

Demerits of Business Franchisee

The person of the various countries has also recognized a number of demerits. These demerits are identified as follows.

The products offered are not healthy at all like pesticides in Cold drinks, use of cheese in pizza results in increase in heart blocks or heart attacks. The quality of the product offered does not remain world class after some time. Only few products are offered cheap, but the maximums of the other products are much costlier. The earnings from franchisee go out of the country. Dumping of the products is made in order to fail the local businesses, and later create monopoly.

Conclusion

In a nutshell, a Franchisee business can be of many types, and the requirements for its start can vary as the case may be. Also the franchisee business has both merits and demerits. Thus a person should open such franchisee business in his/her city which has maximum of merits and minimum of demerits.