Now, many firms offered franchise bussiness to other people. But we should know that offering a franchise to the other people and other people purchasing franchise have many terms and condition to fulfill which it can call as a franchise bussiness.
Here are few tips before you choose one which I summary from a franchise bussiness magazine
1. It must have its own bussiness style(owning SCA so able to win competition for the future)
2. Has been proven as a profitable firm before.
3. It’s service & product standard should be written on legal paper.
4. Easy to duplicate and aplicate
5. Continuation support from franchisor to franchisee as long as still in coorporate terms(ongoing support-critical point)
6. The firm’s brand must already trade mark.
How about in Indonesia
If you wish to open a bussiness and choose a franchise to expand your bussiness. You must be able to fulfill at least the on going support- critical point. If failed to fulfill these, ussually firm will get a fine until Rp. 100 million. It’s being arranged at PP chapter 8 especially point number 4(the obligation as licensor). What ussually franchisee(the one who offering franchise to other) may earn franchise fee or royalty payment from franchisor.
There is other type of franchise model which call as bussiness opportunity. The bussiness expand through the branch company. Ussually the bussiness owner(not the one who purchase the bussiness) profit from revenue sharing. This type don’t tightened and the contract fee only pay once for each terrritory. It’s been predicted, this type of bussiness will potentially grow for the next few years.
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