Thursday, April 2, 2009

Which franchise is safe to buy right now?

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We wanted to look at francise as an investing opportunity, so we started to look at various resources available online. Basically, we wanted to understand what are franchises, how does the business model work and which is the best and safest franchise to buy right now?

Franchise is an authorization to sell a company's goods or services in a particular place. The franchisor grants the independent operator the right to distribute its products, techniques, and trademarks for a percentage of gross monthly sales and a royalty fee.

Businesses for which franchising is said to work best have the following characteristics:
- Businesses with a good track record of profitability.
- Businesses built around a unique or unusual concept.
- Businesses with broad geographic appeal.
- Businesses which are relatively easy to operate.
- Businesses which are relatively inexpensive to operate.
- Businesses which are easily duplicated
Ofcourse, you would have to research much more if you think you want to own a franchisee or if you want to become a franchisor. These are just some of the pointers from resources we found online.

There are advantages for both franchisors and franchisees - a win-win situation:
Advantages for franchisors:
- A quick way of expanding your business and revenue
- Legal Considerations as laws are different in different countries
- Operational Considerations as local operations are best handled by a local team who understands its people and processes

Advantages for franchisees:
- Quick Start with a proven business
- Expansion w.r.t diversification especially if you get the right pricing
- Training material is readily available with a proven business model and mentors and processes

Found a good article on about which is a safe franchise to buy right now and would recommend you all to visit this if you are interested in franchises:

To find a franchise that fits your needs or just to browse all types of franchise information and franchise opportunities I suggest you visit
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