A franchise is an arrangement between a well-known
company (the franchiser) and a local operator (the
franchisee) who is self-employed. The franchisee pays
the company an initial fee to use the brand, systems and
knowledge of the company and a management service
fee, based on a percentage of turnover. In return, back-
up support is given which usually includes guidelines for
running the business, advertising, design and layout of
business premises, and continuing support and training.
This means that they can use a well-known brand name for their business with the benefit that the name and its products are already familiar to the general public. Many types of business are run as franchises, for example, convenience and take-away food stores, printing, vehicle hire and professional cleaning services .
Although in most cases a great deal of information and support is available from the franchiser, franchisees need to understand the basic principles of running a business from a financial and operational point of view. They also to be able to evaluate the different franchise agreements available.
Most franchises involve long working hours. Actual hours
worked varies according to the type of business and may
involve evening and weekend work.
The work environment also varies according to the nature of the franchise.
To be a self employed franchisee you should:
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