Franchising is simply a method for expanding a business and distributing goods and services through a licensing relationship. In franchising, franchisors (a person or company that grants the license to a third party for the conducting of a business under their marks) not only specify the products and services that will be offered by the franchisees (a person or company who is granted the license to do business under the trademark and trade name by the franchisor), but also provide them with an operating system, brand and support. One of the benefits of opening a new franchise business is that you don't have to start from scratch. A viable concept already has been established. Your job as a franchise owner is to duplicate the formula to generate a profit for yourself. You must complete a rigorous evaluation process to be approved to run a franchise operation.
Benefits of buying a franchise :
- 1. Franchises offer the independence of small business ownership supported by the benefits of a big business network.
- 2. You don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model.
- 3. Franchises have a higher rate of success than start-up businesses.
- 4. You may find it easier to secure finance for a franchise. It may cost less to buy a franchise than start your own business of the same type.
- 5. Franchises often have an established reputation and image, proven management and work practices, access to nationwide advertising and ongoing support.
Franchise agreements contain a strict list of obligations that franchisees must follow in order to uphold and carry on the proven business model that the franchisor has carefully developed. This ongoing obligation requires the franchisee to comply with the systems and procedures outlined to the franchisee in both the franchise agreement and operations manual. The duties in which you as franchisee must exercise. These are:
- 1. The duty of disclosure.
- 2. The duty to act in good faith.
- 3. The duty to comply with the business model.
- 4. The duty to maintain a minimum level of performance.
- 5. The duty to contribute to the market fund.
- 5. The duty to purchase and supply products and services.
Franchising is a regulated industry and prior to offering or selling franchises you need to ensure that you comply with the franchise laws. Once you comply with the franchising laws, there are advantages to franchising but if you don't do it right you will have legal and regulatory risk.
Like every other business expansion model, franchising requires capital and your investment in developing a franchise system and satisfying your regulatory obligations.
OHHOY supports franchisee dealership of the different products, services and information facilitated in a singular brand, platform and system to aspirants looking to start new businesses. Through OHHOY franchisees can earn more income from multiple businesses and make their business strong, stable and more profitable in very short time using the integrated dealership of multiple businesses in different industries.
The multiple businesses on-boarded on the integrated dealership platform help the franchisees to
effectively utilize their time, premises and resources,
generate revenue from multiple streams,
reduce the dependency on any particular industry, product or market segment and hence, increase the sustainability,
reduce the risk of turmoils in the technology, market or products,
meet broad range of market needs,
cater to all categories of customers and merchants in the neighborhood,
maximize the lifetime value of every client,
leverage on the promotions and support from different companies,
benefit from booming market sectors with assistance of OHHOY and its affiliated supplier companies.