If you choose not to create a business from scratch and buy a franchise, it does not mean that you have got rid of most of the trouble. To be a successful choice to answer a few questions about LETA franchise.
– As far as is known this brand? On this depends the visibility of your new business on a background of others. If it is relatively new, not had time to become a popular structure may immediately good income is not expected. At the same time, a little-known brand, and is fraught with great potential for development, in contrast to the “preserved” old companies, with a large network of branches. This also can be attributed to lower costs of lump-sum payment and royalties, as the brand is not promoted, the possibility of reaching a new, yet untapped by large companies, the market.
– How big is the competition in the industry? The higher the competition, the harder it is to promote its own structure, and even the popular brand may not always help. Thus, among the fast food is very powerful and untwisted “McDonalds” networks opposed, and not without success, a number of local networks. So in this case, can be profitable investing in “McDonalds”, and, say, in a very democratic modern catering – “kartoplyu liver.”
«McDonald’s» vs …?
– How big is the lump-sum payment and how “very heavy” royalty? So, let’s say, the first may be relatively low, allowing you to start the game the novice with a minor amount of finance, but royalties – may well be devastating, “eating” all the income. Therefore it is necessary to estimate the ratio of the expected level of income (for example, to communicate with the franchisee already holding this work) and royalty costs. For example, in the business of providing services to the rental of apartments, for example, the company ArendaGroup – with a moderate lump-sum payment and royalties are not predatory, perhaps quite intensive development of business, especially in view of the growth of demand for apartments for rent in the population.
Apartments for rent on the franchise – a promising
– Another important question – who directed this business? That is, advance should determine the range of consumer products and services, its mass and requests – and in relation to customers, is focused on the brand. So, going back to the already discussed the example of an apartment for rent, it should be noted: this company, which provides franchise for daily rent apartments, mainly working with foreigners, tourist-countrymen, romantic couples, travel – thus, the cost of daily rent significantly depends on this contingent. That is, the answer to the question of the consumer depends – how good future prospects of the project and how much profit will bring business.
– Were there any legal problems the plan? Investing Finance albeit in untwisted, but not really engaged in a legitimate business (no, it may be within, but it is very close to the edge) network is probably not the best option. A slight change in the law, or even the emergence of what some legal tensions can lead to the collapse of even a very popular brand. Therefore it is better to make sure that it is – absolutely honest business, and work is absolutely officially. For example, the market for delivery of apartments for rent in Kiev, there are enough honest company, and if they are invited to the deductible, refuse, definitely not to be away from her. At the same time, the semi-legal agencies occupying the 10th position in the ranking of market participants, counting from the end, they can not even offer the business traveler, a full package of documents for accounting, are unlikely to make you a successful businessman, directions of apartment rent for the franchise.
This, of course, not all, on what to look for when choosing a franchise. But the main thing – it is, of course, the brand recognition, integrity, conduct of business, transparent conditions work with franchisees and prospects. Added to this is also the possibility of deviations from the standards, especially in situations of sudden changes in the market, the level of support / quality of teaching in the early stages, and the ability to go out of business or to sell it.
