A majority of the most successful businesses today are franchises according to research statistics. Franchising is a strategy that involves licensing trademarks. The concept applies to any kind of products and services such as restaurants, retail, and beauty sector. The reason why franchises are successful is the fact that they have been tested developed, marketed and promoted. The business, therefore, is not established as new but one that has been marketed, and its name recognized. Thourough market research is however important before one venture in any business franchise. This ensures that one is familiar with the products and services being franchised and how to implement the strategy.
Currently, restaurant franchises are the most successful and popular in the franchising sector. America is among the leading nations in having the highest number of hotels that are part of the franchise. A majority of the revenues generated from the hotel industry is obtained from them. It easy to come across a restaurant that is part of a franchise in the streets or malls in the United State. Restaurant franchises have proved to be recession proof, and most importantly they are providing a wide variety of opportunities. Common franchise ventures include burger, fried chicken, burger, healthy eating franchises, coffee houses, sandwich bars and other fast foods. The restaurant franchise businesses ensure that the business thrives by ensuring their customers’ needs and wants are satisfied are met.
In starting a restaurant franchise it vital for one to know it the business has its pros and cons depending on several factors. One of the merits of a business is that it offers instant business. The head office for the franchise is responsible for marketing and d?cor thus giving it a head start. Guidance offered to those who are new in the venture ensures that they have the required skills. Since the franchise benefits from name recognition, one does not need to worry about the startup cost that comes with advertising and marketing. However, the demerit for the business is that one has to pay a considerable amount of money. Loyalties also have to be paid to the business head office as part of the agreement.
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The cost of publicity and advertisement is covered for by the royalties paid. Another demerit is that, when one establishes the business under a franchise, they have to go by the d?cor and the menu dictated by the head office. Other rules that need to followed including wearing of staff uniforms and conformity of sitting plans. Business persons with creative mind are not suited for such ventures.Lessons Learned About Sales