Franchise Hollister CA

Business format franchises generally include everything necessary to start and operate a business in one complete package. Business format franchises provide the product, trade names, operating procedures, quality assurance standards, management consulting support, and facility design.

Wayne B. Cooper
235 MONTGOMERY ST RUSS BLDG
SAN FRANCISCO, CA
Nicholas Scott Kanter
818-907-3289
16633 VENTURA BLVD
ENCINO, CA
Min Kyung Chai
16148 SAND CANYON AVE
IRVINE, CA
John Robert Sabatini
515 S FLOWER ST
LOS ANGELES, CA
Robert William Hunt
2200 DOUGLAS BLVD STE 100A
ROSEVILLE, CA
Thomas Michael Regele
444 S FLOWER ST WELLS FARGO BLDG
LOS ANGELES, CA
Martin D. Fern
310-598-4158
2029 CENTURY PARK E STE 1900
LOS ANGELES, CA
David Hugh Stern
213-892-5012
601 S FIGUEROA ST STE 1500
LOS ANGELES, CA
Mark E McKeen
415-856-7075
55 Second Street Twenty-Fourth Floor
San Francisco, CA
Tal Shilo Grinblat
818-907-3284
16633 VENTURA BLVD
ENCINO, CA
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Franchise

Why Buy a Franchise?

First of all, let's define what we mean by the term: franchising refers to an arrangement in which a party, the franchisee, buys the right to sell a product or service from a seller, the franchisor. The right to sell a product or service is the franchise.

There are basically two types of franchises: (1) product and trade-name franchises and (2) business-format franchises. A product and trade-name franchise generally involves the distribution of a product through dealers. For example, auto dealerships are product and trade-name franchises that sell products produced by the franchisor.

Business format franchises generally include everything necessary to start and operate a business in one complete package. Business format franchises provide the product, trade names, operating procedures, quality assurance standards, management consulting support, and facility design. Many familiar convenience stores and fast-food outlets, for example, are franchised in this manner.

People are attracted to franchises because the best ones have proven to be extremely successful over the years, and they combine many of the benefits of business ownership with the brand name, experience, and economies of scale provided by the established corporate franchisor. In fact, good franchises generally have a higher success rate than other types of businesses. Let's take a look at the advantages and disadvantages of franchising:

Advantages of Franchising:

  • Risk minimized. A reputable franchise is a proven business method.
  • Name recognition. A well-known name can bring customers into the business and provide a competitive advantage for the franchisee.
  • Training. A franchisor can provide a regimented training program to teach the franchisee about the business operation and industry even if the franchisee has no prior experience.
  • Support. A franchisor can provide managerial support and problem-solving capabilities for its franchisees.
  • Economies of scale. Cost savings on inventory items can be passed on to the franchisee from bulk purchase orders made by the franchisor.
  • Advertising. Cooperative advertising programs can provide national exposure at an affordable price.
  • Financing. A franchisor will generally assist the franchisee in obtaining financing for the franchise. In many instances, the franchisor will be the source of financing. Lenders are more inclined to provide financing to franchises because they are less risky than businesses started from scratch.
  • Site selection. Most franchises will assist the franchisee in selecting a site for the new franchise location.

Disadvantages of Franchising

  • Franchise fees. Franchise fees are required to be paid to the franchisor at the inception of the franchise agreement. These fees can range from a few thousand dollars to hundreds of thousands of dollars depending on the franchise.
  • Royalties. The cost of many franchises includes a monthly royalty (fee) based on a percentage of the fr...

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