Franchise investment seems to be a hot buzzword in the business world recently. Companies market their brand to franchise to hopeful business owners. Franchise business opportunities are relatively easy to market and sell because they are naturally the total package, a successful, established business handed to an investor on a silver platter. But what, exactly, is franchise investment?
Business franchising is a legal agreement between a business investor, the franchisee, and a franchise company, the franchisor. The legal agreement outlines what portions of the franchised company the franchisee will use in their business, including the use of the name, logo, trademark and trade name, along with any proprietary business models. To the general public, there is little distinction between the franchisee’s business and the franchisee’s company, which is the benefit to both parties. The franchisee gains the benefit of the public already being familiar with the brand and services offered, using the franchisor’s previous success to launch their own business. The franchisor commonly gains royalties on the franchisee’s business income.
Many of your favorite stores are franchised, they may vary between location and business owner, but the basic model and business structure is the same. McDonald’s is a perfect example. Anywhere in the world, it is the same, but it is the most popular franchised business in the United States. Anyone can buy a franchise and the name sells itself. This is why a store can go out of business when the franchisee fails, whereas other locations of the same store in the same area remain open and thriving.
When you are considering buying a franchise, it is important to remember that you don’t invest in the business opportunity because you want to change the system. You invest in the franchise because you believe in the tried and true business model. Simply buying a franchise does not guarantee success. The franchisor has established the brand, policy manual, and mission & vision, but they are trusting the franchisor to do the work, implement the plan. If business practices are changed or the franchisee relies on the success of the franchisor’s brand or label to “sell itself,” instead of putting in the effort, the franchised business will surely fail
The best way to picture a franchise is to think of the franchisor as a large rose bush nursery. When the franchisee invests in a blossoming rose bush, the expectation is that he will take the bush and plant it, tend to it, care for it in the same manner as the franchisor did. If the franchisee plants the rose bush and does not tend to it, hoping to succeed by riding the coattails of the nursery manager, the bush is sure to wilt and wither. But, with the right soil, pruning, and attention, the rose bush can be the star of any garden. Being a business owner is hard work; investing in a franchise reduces some of the front end work by offering a well-branded business to grow. If you are ready to invest in an affordable and profitable franchise, look no further than Rebounderz Indoor Trampoline Park! Call for your investment opportunity today.