Franchise without investment - a modern way to start a business

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Franchise without investment is one of the modern ways of doing business. In this case, it means renting a promoted trademark and the opportunity to apply a ready-made business model. At the same time, the franchisor receives a fee for providing a business system and an initial fee for the right to use the brand. Therefore, a franchise without investments still requires a certain amount of funds.

Despite this, this option of starting your own business is a great opportunity to make money for aspiring entrepreneurs. In addition, there is a free franchise, which appeared due to global competition. To introduce goods or services to new markets, a new business scheme was developed - a franchise without investments. But the lack of capital does not mean that everything will be easy. Quite stringent requirements are put forward for future partners: the presence of certain skills, the ability to communicate with people, and so on.

Franchise Implementation Process

A franchise with minimal investment associated with retail trade involves the registration of a partner by the director of the company in accordance with the labor codeor contract. In this case, you are the full owner of the business, but at the same time you cannot change the company's policy, choose suppliers, regulate costs, and so on. You sign an agreement with the franchisor that covers your rights, obligations and terms of cooperation.

After the contract is concluded, you must find the premises, taking into account all the requirements of the company, collect the necessary set of documents and organize an advertising campaign. The arrangement of the premises and the supply of goods are the responsibility of the franchisor.

Benefits

A franchise with little investment is a very promising direction. Its main advantage is that you do not have to develop your business from scratch. No need to develop a business plan, analyze the market. All of this has already been done by the firm selling you the franchise. All you need to do is purchase a license that gives you the right to work under a promoted trademark and set up your business so that it makes a profit.

A franchise without investment is possible in almost all sectors of small and medium-sized businesses. Such a scheme of doing business is beneficial and interesting to both parties signing a cooperation agreement.

In addition, the franchisor provides its partner with all the equipment, raw materials, materials and so on necessary for work. The main enterprise helps to choose the right place for the location of your outlet, solves problems of a commercial nature, providesassistance in the selection and training of personnel.

Cons

The main disadvantage of a franchise is that your business will be directly linked to the market position of the main enterprise. Any negative changes in the work of the franchisor will be reflected in your activities.

It is also worth noting the limitations provided for in this business scheme. You will have to coordinate almost all your decisions with the management of the main company.