Acquisition of a working business model, time-tested. This saves the entrepreneur from "trials" and the inevitable mistakes associated with them. The franchisor gives his partner full instructions on how to build a business and is always ready to provide consulting support.
Possibility of receiving discounts on the purchase of equipment and consumables: since network companies make large purchases, they are usually cheaper.
— The need to pay the brand owner. As a rule, there is an initial payment and monthly royalties.
Dependence on the leading partner, including on japanese whatsapp number his failures. In principle, a situation is possible when the owner decides to leave the market or even go bankrupt - in this case, the franchisee will also face problems, who will have to look for a new trademark.
Limited freedom of action, especially under a rigid contractual model.
The possibility of running into an unscrupulous franchisor who, having received a lump sum payment, will lose all interest in the partner.
The need to promote your brand, attract customers, which can be difficult in a highly competitive environment.
In general, it is impossible to give a clear answer to the question of what is better - a franchise or your own business. Here everything is individual: much depends not only on objective factors (market situation, nature of the agreement), but also on subjective ones, namely, on the experience of the entrepreneur and his ability to run a business. Therefore, in each specific case, you need to soberly assess your strengths.
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Franchise Business Operation Scheme
First of all, the terms of the agreement are determined, where the rights and obligations of each party are recorded, as well as other significant conditions, for example, the term of the agreement.
Until 2014, such transactions were subject to registration with Rospatent, and a mandatory condition was the transfer of exclusive rights to use the trademark; otherwise, the franchise agreement had no legal force and the interests of the franchisee were not protected in any way.
However, in the last few years the practice has changed somewhat, and it should be noted that the concept of "franchising" is still not enshrined in Russian law. It is replaced by a commercial concession agreement, which assumes the transfer for a fee of a set of exclusive rights to a trademark, service mark, etc. However, a franchise can also exist on the basis of other types of agreements, for example, a license agreement.
Payment of a lump sum fee, which represents the entry fee for access to the business model.
Fulfilment of the franchisor's duties: supply of equipment, transmission of instructions, etc.
The actual launch of a commercial project.
