Franchising has made the world look really small. The well knownflavors are now not just restricted to a single town or city butcan be enjoyed world wide. Otherwise it would only be a dreamfor somebody in Asia to wear the fashion of Europe, for the Westto have delectable food of the East etc. Globally as well asdomestically the system of franchising has something good foreveryone. Franchising basically is the taking of franchisee- theauthority or rights to sell the products of some company. Mostoften it is only those companies who have an outstanding name inthe market that go for franchisee outlets. Like a tree expandsand grows through its branches that also bear fruits, so do therenowned companies enhance their business (sales) throughfranchising. Franchising gives them a good opportunity toexplore every small town along with overseas markets. Theprocess to take a franchisee is simple. all one needs to have isthe required security amount to purchase the particularfranchisee and a good place with an adequate business plan. Theamount so taken by the company is for a fixed tenure after whichit needs to be revived in order to continue to sale thecompany?s product. This security amount varies with the kind(food, clothes, electronics?) and the market value or thegoodwill of the company. is for a fixed tenure after which itneeds to be revived. Escalating goodwill of a company entails asurge in the figures to purchase its franchisee. The companiesbesides the amount are also very particular and cautious aboutthe area and size of the workplace to open their franchiseeoutlet. While handing over their franchisee to someonenationally or internationally the franchisors (parent company)educate him of their product, terms and conditions, policies andstyle of working. most often these companies also give certaincrucial tips to prop up the sales of their product. Weekly orbi-weekly advertisements, hoardings and the like are some of thewidely adopted measures for it. Once a company sells itfranchisee to someone then it is solely the onus and freewill ofthe entrepreneur regarding the methods he takes to promote hissales. however the prices of all articles are set by the parentcompany are not subject to modification by the franchisee.Franchisee business has more or less covered all areas of humanneeds. Be it food (restaurants etc.), clothes, jewellery,footwear, bags, makeup kits, electronics?franchising is meantfor all. It is at individual?s discretion to decide whichfranchisee he wants to go for. This can be fairly decided by avigilant market survey and an assessment of the standard andtastes of people in that area. for instance it will not bejudicious to open a top brand?s outlet of expensive clothes in asuburb region where people want to spend bare minimum on theirattire. so the kind of outlet to open, in other words franchiseeto take is directly proportional to the needs and status of theconsumers. all the franchisees have their suppliers fixed. Thesuppliers have to arrange to get the material from the parentcompany and pass it on to every franchisee store that is linkedto it. The ?sale? season is at volition of the franchisee. Butthe supplier as well as the parent company should be informedbefore. The prices during the sales season are reduced to halfor less than that in order to clear the stock which getsaccumulated and is without any serial no.(like there might bejust one size or color left of a shirt, trouser etc.). Usuallythe franchisees do this in order to recover their money and makeplace for the new stock. Thus all in all franchising is a goodbusiness that is beneficial not just for the one who has takenthe franchisee but also for the consumers who get to enjoy thebest of everything in their respective town, city or state.
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Author: Mansi gupta
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