According to Franchise Alliance, franchising is a method of growing a business whereby a franchise owner ("Franchisee") is granted, for a fee, the right to offer, sell or distribute goods or services under a business system determined by the business founder (Franchisor).
Further, the Franchisor supports that franchised business group by providing leadership, guidance, training and assistance, for which they receive ongoing service fees. Therefore a need has arisen for qualified franchise advice from a respected franchise consultancy.
Today
Franchising has made a significant contribution to the Australian economy by enabling companies to grow faster, in many cases much faster, than their own manpower and capital would otherwise have permitted. Some franchise systems have achieved quite astonishing growth rates.
Franchising has also given tens of thousands of people the opportunity to start their own businesses, with an exceptionally high probability of success.
By providing a tried and proven business system, plus the type of support that monitors performance, quality and business standards, the Franchisor vastly improves the chance of success for Franchisees; who are willing to pay for that benefit.
That business success, and the natural wish of a prospective business buyer to enjoy such, is the very key that sustains a market share growth rate far beyond the level most businesses are able to achieve through traditional business growth methods.
Read about buying a franchise and running a franchise.
27-Jun-2006