Simply put, a franchise is the acquisition of the right to do business under another brand name. Here's how it works:
- The entrepreneur chooses a company that offers franchise cooperation;
- The brand representative determines the terms of cooperation with the businessman;
- The contract is signed, the calculation is made;
- Entrepreneur opens a business under the management of the company,
- Using its name, technology, contracts, intellectual property.
You can buy a franchise at the expense of your own savings or credit. If you need a large amount, it is better to contact the bank, if only part — you can get money online at 0.01% in a microfinance company.
Before buying a franchise, experts advise to find out the following details:
- Brand age;
- Brand reputation;
- Number of franchisees;
- Business development territory;
- The level of demand for brand products;
- Reviews from other franchisees.
The last point is the most important. Ask how other entrepreneurs who work with your chosen franchise brand are doing. This way you will learn what can really await you on the way to business development and test the franchisor's promises.
Franchising has its pros and cons. Weighing them, you will be able to understand for yourself whether to buy a franchise in Ukraine or not.
- Recognition and reputation;
- Ability to return the investment in a short time;
- Reduced risks;
- Opportunity to get a loan on favorable terms;
- Support in the process of starting and developing a business.
- The need to follow the rules of the franchisor;
- Large investments at the start;
- Restrictions on work;
- Network bankruptcy risk.
The important thing to remember is that a franchise is just a tool for doing business. In this situation, much will depend on your approach to the case: the desire to invest their own resources and the ability to manage.