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Arnold, Bruce & Doerfler Insurance Blog

Guidelines to Starting a Franchise Business

3/12/2019

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You want to start the business, but you don’t want to start from scratch. You don’t want to do the branding, marketing, and sales. You don’t have any idea what product or service you want to start with, but you really want to have a business of your own. It is when Franchising business can help you get to that.
​
Being a franchise doesn’t mean that you would not do the work, though. There are still things to be done.
​How Is Franchising Different
In franchising, you do not need to think of your business name and create a logo. You are buying the rights to the business. It includes its equipment, method, and marketing techniques—just to name a few. Familiar brands like McDonald’s, Pizza Hut, and Starbucks are a few names that you can franchise.

Speaking of doing the work, you must also undergo training for the said company’s standard. You can take it to your advantage because you can feel how to be hands-on in the business. Franchisees learn the methodologies of the particular business system.

For the marketing techniques, the franchisor will also help you develop the business quickly. Sure, you already got the name of the company, and it is already known to the public. However, you must consider the location of your business that will be set somewhere else. You would still do some push to position the company in the said area.

Moreover, you can expect a positive result when the business you are franchising already got a big name. It might be more expensive than setting up your own store, though. Of course, that depends on the store you have in mind.

The Risk of Franchise
As mentioned, there will be fees to pay to franchisors. Now, there are also ongoing royalties to pay on that of other expenses. It can be a lot of numbers.

Rules are also set by the franchisor to ensure the quality of the product and services. It must be followed at all cost because you do not want to ruin the company’s reputation.

By the time you change your mind about franchising, you can’t just sell it to other people. The franchisor should approve it first. When that happens, there is more paperwork to settle.

You see, no business runs without effort, and it always requires a lot or even more than what you can offer. Additionally, you need to assure everyone’s safety regardless of the business. At the Arnold, Bruce & Doerfler Insurance, we take pride in making sure that our clients are well-protected at prices they can afford. To learn more about how we can help you, please contact our agency at (503) 222-1951 or Click Here to request a free quote.
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