Franchiseku.com

•  Executive Franchise
Executive franchise are traditionally geared towards the needs of business executives, such as managing directors. A franchise operates a business providing a service in areas such as accountancy, cost reduction, project management and consultancy. Generally, the need for business premises is eliminated as the majority of the work is conducted at the client's place of work.

The advantages of franchise:

•   Receiving specialist training
The advantages associated with the concept of franchising are simply not evident with independent business start-ups. For example, the franchisor's initial and continued specialized training programme enables new and inexperienced franchisees to become competent operators within their chosen business in a comparatively short space of time. This specialized knowledge benefits the franchisor and franchisee alike.
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•  Assessing the franchisor
A great of information of franchisor can be gained from interviews featured in magazines, newspapers, or on the radio. When making your assesment be careful about accepting information at face value, since persuasive wording can often be used to create an illusion of a viable opportunity which may not materialise in reality. Always give consideration to the validity of the source - after all, is the franchisor really going to publish, or say, anything derogatory about the business?
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•  The initial fee
This is a one-off payment imposed by the franchisor to procure your right to operate the franchised system. The fee wil partially reimburse the franchisor's costs for setting you up in business and will include your initial training, the provision of operating manuals, marketing, opening stock and equipment. Never be afraid to ask for a breakdown illustrating how this fee is both calculated and allocated.
The franchise fee must be relative to the rest of your start-up costs and should not include a large profit for the franchisor. The franchisor's profits should be generated through ongoing fees in the form of justifiable royalties. However, a proportion of the fee will be used by the franchisor to help finance costs such as franchisee recruitment and developing the franchise system. These are perfectly justified as they will benefit the network as a whole.
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•  The intellectual property of the franchisor
This is covered by a series of clauses which provide details of what the franchisor owns in terms of copyright material, trade marks, trade names, and operating methods.
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