Small business franchises are popular business deals. Small business is good because it is in demand both in megalopolises and in small towns. The choice of options can be called enormous without exaggeration. Probably, today it is difficult to name a branch of the economy and a line of activity (and not only a small one) for which franchises would not be offered. So the main thing is to make the right choice because the success of your enterprise will largely depend on this decision. The share of franchising in world GDP is growing every year, providing a significant contribution to the economies of various countries and the creation of new jobs.

The owners of successful companies and "promoted" brands are increasingly inviting newcomers to join their business and purchase a franchise, becoming part of a profitable business project. One of the main positive aspects of this way of doing a business project is stability. All technologies, schemes of processes and procedures, recipes, order of interaction with suppliers and customers, advertising policy, etc. have been worked out, tested in practice, and have proven their effectiveness. It is these circumstances that provide a reduction in the payback period of a business project and bringing it to a profitable level in comparison with the creation of an enterprise, as they say, "from scratch." It makes sense for entrepreneurs working with small businesses to pay special attention to franchises in trade, catering (coffee shops, small family cafes, bakeries, etc.), consumer services (dry cleaners, repair of shoes and clothes, leather goods, and household appliances) .

The popularity of franchises related to entertainment and travel, sports, medical services (including various types of massage, physiotherapy exercises, etc.), as well as car service, repair, and construction work, is growing every year. And even financial crises, pandemics, and similar negative circumstances often not only do not become an obstacle to small businesses on a franchise basis but even provide faster growth and development compared to quiet periods. An example of such projects can be preschool and school educational institutions that work with the use of modern information technologies. Various institutions for additional development and training are also in great demand during periods when there are various restrictions on the work of classical schools and higher educational institutions. The production of food to go and with delivery can also be an example of a franchise (both small and large) that will flourish during quarantines, restrictions on the movement of people around the city, etc. In general, all services related to the delivery of food, consumer goods, medicines, etc.

are highly demanded during such periods.

The success of a business project is ensured by a preliminary study of the key factors affecting small and large businesses, regardless of whether it is offered through a franchise, simply purchased from the owner, or created independently. First of all, it is necessary to assess the current level of development of the selected industry and its prospects, at least for the coming years. Of no small importance is the current severity of competition, the number of closest competitors, their pricing and service policy, advertising activity, etc. It will be useful to pay attention to the level of brand visualization: the presence and recognition of the logo, brand names, slogan, etc., the existence of a corporate website, rules, and principles of interaction with consumers (how satisfied they are with this brand in general) and other parameters. Having found a franchise in a specialized Internet directory, you can carry out at least a short search for various reviews and comments about it.

Perhaps some franchisees found it necessary to share their experience of cooperation and provide additional information about the franchisor to all interested parties. And, of course, the entrepreneur will need to perform all the calculations associated with the organization of the enterprise. The terms of a franchise usually imply the need for an initial payment, the amount of which depends on the value of the brand, determined by the success, fame, and profitability of the company. In addition, to organize a company, it is necessary to invest a certain amount of money in fixed and circulating assets (purchase or lease of industrial, retail, and other premises, purchase of production and office equipment, recruitment, hiring, and training of personnel, a campaign to bring products to market, etc.). P.).

So the franchisee should estimate the size of the initial investment in a small business project as accurately as possible when building a financial plan. It depends on how soon he starts making real profits. Monthly royalties are usually calculated as a percentage of turnover. Often, an approximate investment plan and a calculation of the payback period of a small (and not only) business is provided along with a description of the franchise in the corresponding online catalog. The experience of competing businesses operating under the same franchise or simply in similar market segments can also be a source of extremely useful information and help franchisees make the right choice. When choosing a franchise partner, it is necessary to take into account his willingness to provide advice in the field of production technology, marketing, promotion, optimal organization of daily activities, staff training, registration of points of sale, etc., provide the subsidiary with information materials and provide other assistance in terms of business development .

Usually, such consulting is included in the list of free services (within the framework of franchising cooperation). However, there are also options when each consultation is provided for a separate payment according to a special price list (some business owners value their information resources very highly and are not ready to provide them free of charge even to regular partners). By the way, consultations and advice regarding tax optimization, development of a system of corporate discounts, the possibility of a franchisor lending to a junior partner's business project can be of great importance for small businesses. By the way, there are also free franchises that generally do not provide for either an initial payment or monthly payments (mainly in small businesses in the sphere of public catering and consumer services).

In general, summing up all of the above, we can conclude that a small franchise business has a lot of advantages over classic business models. There are, of course, costs, risks, and problems, but they are not too noticeable and threatening the final result. With a properly organized and pre-calculated small business under the franchising program, an entrepreneur can feel confident both in a large metropolis and in a regional center or a small settlement of regional significance. The main thing is to choose the right market segment and make every effort for its successful development.

Franchise and franchisee are very closely related concepts. If you are interested in a franchise, then upon acquisition you become a franchisee. This is a very profitable business, in the implementation of which you only need to follow the rules and provided by the franchise regulations. You don't have to come up with something new, re-composing a business process, carrying out other difficult operations. It is only necessary to purchase a ready-made business, which is called a franchise. A franchisee is a person who acquires the right to use the tools that any eminent company uses to build a business.

You don't need to come up with anything from scratch, you just need to use a ready-made concept. In addition, the name is already well-known, which means the costs of increasing the level of brand awareness are significantly reduced.

As part of a franchise, the franchisee must only convey to their consumers the fact that a local representative office has opened in the region. It is much cheaper than promoting an unknown brand from scratch. A franchise can be coffee you buy nearby cafe in the morning, a shop where you buy, a pizzeria that has a world name and is located in the neighborhood of a local consumer.

Franchises are everywhere and growing in popularity. A ready-made business opening a franchise model permits the franchisee to simply invest the available financial resources into an already tested and functioning business model. You just need to correctly implement provided by the franchise prescriptions. The franchisee almost does not risk anything, since there is a business behind it, a well-known brand, a huge experience that has been collected over many years or even decades of vigorous activity.

Franchising is characterized by a high level of popularity in any country. A person who decides to become a franchisee can simply invest financial resources, recruit personnel according to criteria, build business processes, and get a result. Even the products are often sourced from the country of origin of the franchise. This is very convenient as you can save labor and financial resources. There is no need to create a strategy or work on a brand. All this is already available to you and remains is to launch a ready-made biz model that definitely brings financial resources as a bonus.

The franchisee able to effectively use the acquired franchise, receiving a significant share of financial resources at his disposal. The terms of the franchise are discussed directly with its supplier and may be different. For example, you can constantly deduct a share of the profits, or you can agree on other conditions, it all depends on the owner of the exploited brand.

It is enough just to buy a franchise and use all the experience that has been gained by previous generations of people when it comes to the old trademark. You should be extremely careful and avoid mistakes because any inaccuracies in creating a franchise can be noticed and then the franchisee receives problems instead of profit. But this is not a very common scenario, thus, you need to focus on the correct implementation of office operations.

Following a franchise and adding consistent additions to your company's competitive edge. After all, many franchises use the localization method, when, for example, in McDonald's they sell pancakes if it is located in Russia. If the corresponding McDonald's franchise opens on the territory of Kazakhstan, then the fast-food cafe offers a choice of burger options that contain horse meat for the local population.