What Is A Franchise?

A franchise is simply legal and commercial relationship between the owner of a trademark, trade name, advertising symbol, or established business or idea.  A franchise is also a method a company uses to distribute, promote, or sell their products or services sell their goods or services in new markets.  Typically, the parent company, also known as the franchisor, authorizes independently owned third party operators, known as franchisees, the right to market and sell the trademarked goods or services, and the “goodwill” and brand name recognition already established by the company.

In exchange for the right to market the small business franchises already established product or service in the authorized geographical or retail area, the independent operator (franchisee) agrees to pay an initial fee and ongoing royalties to the franchise owner.  Typically, the franchise also governs the quality standards, marketing, and many other decisions that can affect the parent franchise. 

Franchise models are typically successful since the business model has a proven track record of success, and it is reproducibility makes it considerably simpler to become a business owner.  Independent, non-franchise businesses have a very high rate of failure within the first year compared to franchises.  To assist in a successful franchise implantation, most franchisors will offer considerable amounts of assistance in forms of marketing and advertising plans, guidance, management council, financing assistance, support, training and much more.

An example of an exceptional franchise opportunity is StretchAlicious ActiveWear Boutique.  Now is the time to take advantage of the explosive double digit annual growth of the women's activewear industry!  Contact a member of our small business franchise team for more information on the StretchAlicious small business franchises and other retail opportunities in your area.