| 1. Franchise - a business established or operated under an authorization to sell or distribute a company's goods or services in a particular area. 2. Franchising is a method of doing business wherein a "franchisor" licenses proven methods of doing business to a "franchisee" in exchange for a recurring payment, fees and a percentage of sales or profits. 3. The advantage is starting up a new business quickly based on a proven trademark and formula of doing business, as opposed to having to build a new business and brand from scratch. 4. A good franchising has two characters: a good track record of profitability, and a easily duplicated mode. 5. Various tangibles and intangibles such as national or international advertising, training, and other support services are commonly made available by the franchisor. Note: 1. A franchise is not reliable if it does not present you with a UFOC at least 10 business days before any contract is signed and before any money changes hands. UFOC is an abbreviation for "Uniform Franchise Offering Circular", a legal document used in the franchising process in the United States. 2. The franchisor’s trademark should be a registered trademark to make the concept uniquely distinguished from others. 3. One simple way to avoid scams is to research franchise name and 'scam' on search engines, and then to see what happened and why happened.
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