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What is a Franchise? |
In This Section
Business Franchise
Buying a Franchise
Franchise Costs
Franchise Organisations
Franchise Case Study
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About CYB
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You have probably heard of McDonalds. Its only been going about 55 years but is arguably the worlds biggest brand. The two guys that started it have used the franchise model to make their fast food outlets reach a global audience in a relatively short space of time. Other franchises include Dominoes Pizza, ProntaPrint and Dyno-Rod.
A franchise can be a win-win situation for the franchisee (you) and the franchisor (the original business). You get a method of running a business that is proven to work and a set of standards to adhere to. You also get support and someone to talk to who's job it is to help you out.
The franchisor gets a nice fee up front from a few hundred pounds to a few hundred thousand pounds when you look at Burger King or McDonalds. They may also take a small commission on business you generate or force you to buy supplies from them. They also get a new outlet in an area for no cost, building up their brand.
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Before investing a franchise, do your research!
"I was blown away by the slick presentation at a franchise exhibition. It was just what I was looking for after being made redundant and IT has to be a fast growing sector. Once I'd signed up for an information pack, they wouldn't take no for an answer. They phoned me up day and night for weeks, I tried telling them I didn't have the money but they tried to persuade me to re-mortgage the house.
I did some research on the internet and found that once they had signed franchisees up and goth their money, they did not spend as much time helping and assisting as they did trying to sell the franchise packages. I spoke to people who lost everything and still had to pay a monthly fee!! I feel I had a VERY lucky escape."
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