Despite the benefits of self-management opportunities, a new entrepreneur should not take responsibilities and decisions lightly. You may have almost all the elements of the business and marketing of your franchise – but that doesn`t mean you can just sit back and let the system do all the work for you. Franchising a successful home business doesn`t necessarily promise that you will always be profitable. In fact, even experienced businessmen can fail with a successful franchise if they don`t choose the right home option. – The franchisee enjoys national marketing support that a small business would not normally be able to afford. In some cases of big brands, they can wait for customers to open their doors (for example in a new McDonalds). – Huge reputational risk by allowing other companies to use their names: if a franchisee does not meet the franchisor`s quality standards (cleanliness, customer service, pricing, product quality, etc.), this can have a negative effect on the reputation not only of the franchisee, but also of the wider reputation of the franchisor. There is therefore a risk that others who are not directly related to the company may use the company name and brand. By manufacturing franchises, a franchisee grants a manufacturer the right to produce and sell goods using s.
name and trademark. This type of deductible is common among food and beverage companies. For example, soft drink bottlers often receive franchise fees from soft drink companies to manufacture, bottle and distribute soft drinks. Large soft drink companies also sell deliveries to regional production companies. In the case of Coca Cola, for example, Coca Cola sells the syrup concentrate to a bottling company that mixes and resells these ingredients with the water and bottles of the product. There are three main types of franchises – business format, product and manufacturing – and each works in different ways. The franchise agreement is the legal agreement that creates a franchise relationship between a franchisor and a franchisee. Under a franchise agreement, the franchisee has the right to create a franchisor and a franchised business, with the franchisee having, among other things, the license and right to use Franchisors trademarks, commercial bids, commercial systems, operating manuals and sources of supply for the offer and sale of the products and/or services designated by the franchisor.