Franchise 101: Definition and Benefits
Posted on November 11, 2015 | Author and Reviewed by: Rose Ann C. Galera, RPh
Take advantage of the booming economy and purchase franchise in the Philippines today. After all, there are several advantages to setting up a franchise. Not sure you know what a franchise is? We can help you out as we present to you the definition and benefits of a franchise.
What is Franchising?
A franchise is a business relationship entered by one entity (the franchisee) with another company (the franchisor) by paying them a certain fee in exchange for the legal usage of the franchisor’s name and products. Aside from the one-time fee, the franchisee will also need to pay the franchisor a royalty fee.
No two deals are alike. Some may include the supply of materials for product consistency while others may provide the kiosk itself. One thing is consistent: the legal consent of the franchisor to the franchisee. With over a hundred typed of franchises to choose from, it can be difficult to decide. Among the best picks are:
Filipinos are well known around the world for their love of food which is why it’s no wonder why food is among the top businesses Filipinos franchise! These smart franchisees utilize their knowledge of the Filipino palette in choosing the right business to franchise in order to garner profit.
Water Refilling Station
With heavy pollution these days, it sure isn’t safe to drink the water straight out of the faucet. These days, people want to be safe and healthy, thus the reason why the water refilling station business is booming these days. Purchase a water refilling station that will cater to small subdivisions where there are less or no established competitions.
Everyone gets sick at least once in their lifetime. Some may have a mild illness while others may have a chronic one like diabetes. This only means that like food or water, there will always be a need for medicine. Got back pain? Head over to your nearest drugstore! Allergies making your sneeze big time? Go on and purchase some antihistamine at your nearest pharmacy! See? It’s always helpful to have a drugstore near your home.
You may not realize it, but the store you are frequenting may actually be franchise and not just another branch of the business. Let these 4 benefits convince you to get a franchise for your next entrepreneurial venture.
Buying a franchise of an established brand has numerous benefits. One of which is having people easily recognizing your label, even if you’ve started in your area. You already have an established market, which is a huge advantage in terms of racking up customers.
A Proven System
There’s a reason why the franchisor’s business succeeded— their system works! New businesses usually spend a lot of time and money looking for a procedure that works. By having a franchise, you won’t have to do this anymore as you will be using the successful system of your franchisor, lessening your business’s chances of failing.
One of the best things about being a franchisee is the support your franchisor gives you. Since you will be operating an establishment under their reputable brand, they will provide you with training and help you set up your business. After all, you are carrying their name which only means their reputation is also at risk if you mess up due to improper training. In addition, your business will benefit also when your franchisor place an ad for the brand— just another perk of franchising.
Ability to Compete with Big Businesses
Your brand name carries a lot of power; even if you just opened your franchise, you can compete with other, bigger businesses. People trust your business name, meaning they know the quality of whatever service or product you are offering. They will turn to you instead of the less prominent, bigger business thanks to the reliability of the brand you are carrying.
A franchise, especially a pharmacy, is one of the best options to earn money. It offers a lot of benefits that are rarely available to other entrepreneurs. Consider that when thinking of a business venture in the future.