What makes franchising different from other forms of business?

1 year ago •

What makes franchising different from other forms of business

In the world of business franchising is a popular option for entrepreneurs who want to start their own company but don't have the capital or expertise. It offers a lot of benefits over a standard business setup, such as an established framework for success and various resources to help kickstart your business. In this article, we'll talk about what makes franchising different from other forms of business. We'll also discuss some of the advantages and disadvantages of starting your own franchise.

You're probably familiar with the concept of licensing, but in case you aren't, here's a quick rundown: when a business (the licensor) allows another company (the licensee) to use its name and trademarks, the licensee pays an upfront fee and then pays royalties on the profits. This is why companies like Coca-Cola sell their products in grocery stores or vending machines—they have no interest in selling soda themselves; they just want their product out there so they can collect royalties from people who do sell it.

Licensing is how most franchises work as well. The franchisee buys the right to use the business's name, services and trademarks for a fee called an initial investment. In exchange for this investment, he or she gets training and support from his franchisor, who hopes that the success of one franchisee will lead others to want to open up more locations too!

Mitigate the risks of starting a business with a franchise   

Franchising is a great way to start a small business without taking too much financial risk. You don't have to start from scratch, buying all the equipment and supplies you need and finding customers yourself.

A franchise already exists that has proven itself in the marketplace. You can buy into it for less than you might pay for an established business of your own, which means that you're getting an established product or service at a lower price than if you were starting from scratch.

You don't have to worry about finding suppliers; those are already in place with the franchise system.

And since other people are doing all the customer-service work (and perhaps even some of the manufacturing), there's no need for hiring clerks or secretaries—or even managers who would oversee those workers—in order to serve customers directly as they do at many independent businesses today!

Enjoy franchise resources  

Another thing that makes franchising different from starting other types of businesses is the support you get from the franchisor. Franchises usually offer training and support to help you succeed. This can include on-the-job training, marketing support, access to an online community of franchisees, and ongoing educational programs.

You also get a proven system that you can follow: most franchises have systems in place for everything from advertising and selling to accounting and customer service.

You’re buying into an established brand      

If a company offers you the opportunity to own one of its franchises, it means they believe in your ability to run a successful business. However, buying into an existing franchise isn't quite like starting up your own business from scratch.

When you buy a franchise, you are buying a licence. This licence gives you the right to use another company's name and trademarks (e.g., their logo) as well as access to their system for doing business—like recipes or training manuals for making food or providing customer service—and lets them protect their intellectual property from being copied by other businesses using similar products or services.

What this means is that when someone buys a franchise from an established brand, they're not actually purchasing anything from the company directly; instead what they're doing is paying for the right for themselves and others under their control (such as employees) within their territory (the area where they've been given permission to operate) who are directly involved with operating that particular franchise location under those terms set forth in an agreement. This agreement includes everything needed downline including copyrights, branding and specific areas within which only the franchisor has full legal control over.

You get to benefit from the expertise of the franchise owner     

As a franchise owner, you can rely on the experience and expertise of your franchisor.

Your franchisor will help you avoid common business mistakes. As a new franchisee, it’s easy to make costly errors that can put your success at risk and cost you money. Your franchisor will provide training and resources so that you know what to expect as a small business owner, how to handle situations as they arise, and how to avoid costly mistakes by following proven procedures.

You can count on your franchisor for marketing support. With their knowledge of this market niche or industry segment, they have access to sales leads and qualified prospects who may not otherwise be aware of the benefits of purchasing from their franchise system or would be unaware of such an opportunity at all if not for the local presence maintained by individual franchisees like yourself!

You can rely on them for operations support. Franchises are designed specifically with known starting costs in mind which means no surprises when comparing apples-to-apples between various company opportunities available today... knowing exactly where the money goes upfront makes budgeting easier downline too!


If you are thinking about starting a small business, franchising may be the answer. Franchising is a great way to get started without taking huge financial risks, and it can give you training and support that would be hard to get from starting other types of businesses. 

Our team at CNA International is dedicated to offering top-level services on an international level to help clients source and place the best candidates for jobs. We work across a huge spectrum of industries, sectors and senior positions. If you’d like to know more about what we do, or if you’d like us to help your business or career, then contact us today.


E: info@cnaint.com  |  T: +44 (0) 1676 822 222  |  W: www.cnaint.com 

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