Franchise or Startup | What is the
Best Option for Beginners?
FRANCHISE OR STARTUP
If you are planning for a business but you are confused about whether you should invest in a franchise or startup. And you also do not have the capacity of a very large investment getting a franchise can be a good option. Even if you have the capital for a startup investing your money in a franchise would be a better option. Because statistics tell us that risks of opening a franchise store are far less than that of a start-up. More than 90% of franchisees reached high success rates within 5 years. In comparison, the closing rate of start-ups was up to around 92% during the same period.
If you attach yourself with an established and professional company, you will get better chances of business and progress. Online sites and stores providing you products from almost any category you want, are becoming increasingly popular as people want to save time and its much convenient when you can find everything you want at the same spot. There are many successful and professional companies that are working hard in providing all their customer’s needs.
FRANCHISE IN DEMAND
The franchise is a source of rapid approach and accessibility to your products. You do not have to wait a single day for your product to get in your hands. As soon as you see and decide to buy it the very next moment you have it for your use. Due to this reason, there is still a large number of customers in the stores despite the facility of online shopping making the need for franchise stores in demand everywhere.
FRANCHISE AT A MULTILEVEL COMPANY
Generally, there are four simple steps involved in establishing a franchise including application, visit the nearest store, signing an agreement, and finally opening a franchise store. A good multilevel company will provide you long term service and support also in your franchise business. These services can be in the form of free store location selection, free design guidance, ERP management system, on-site supervision, and monthly training courses. So, you are never felt alone with the business as compared to a startup where you must plan, manage, and develop everything yourself.
Check out whether your country or the place you intend to do the business already has a franchise of that brand or not. Your location may be an important consideration before you plan for a franchise. If there is already a franchise in your country the maybe the process will be simple for you. But if you are going to introduce this brand in your country then it can be challenging and a thrilling experiment also. So, if you a person not ready for many risks it may not be a very safe option.
PRODUCTS SELECTION FOR A FRANCHISE OR STARTUP
Do look into the fashion line and style of products brand. Because I believe that every country and region have its own requirements, tradition, customs, preferences, and fashion trends. E.g. certain colors or styles may be more trendy in one place but not much appreciated in the other. So, by selecting the right kind of products in your marketplace you can make your move forward firmly. You can also select only those products that are in high demand in your area. For this purpose, you should have a background survey and homework on your market.
FRANCHISE AGREEMENT DOCUMENTATION
The actual agreement is also of great importance which include some basic provisions. Including assigned territory/ location, operations, site selection, initial training and ongoing support, franchise fees, duration of the agreement, use of trademarks, royalties, advertising, insurance requirement, renewal, and termination rights. Do have a close look at what the company offers. Get a written copy of the agreement 15 days in advance you sign the agreement. So, you can analyze all the aspects, rights and obligations of the agreement. If you find any part of it troublesome or inconvenient for you do negotiate on the point.