What is Franchising?

Franchising is the cloning of an already successful business. The owner of the business (the National Franchisor) grants another party (the National Master Franchisor, or National Master) the right to engage in the business agreed to in the Franchise Agreement.

The National Franchisor (Jim’s Group P/L) allows the National Master (Jim’s Paving) to use its well-known business name, trademark or logo. The Franchisor conducts their own businesses in accordance with the marketing business plan of the National Master & provides to the Jim’s Paving Franchisee (you) ongoing marketing, training, business advice & administrative support.

The relationship between a Franchisor & a Franchisee is often compared to a partnership or marriage. The parties depend upon each other, share responsibilities & share the fruits of their collective efforts. But like a partnership or marriage, a franchise relationship can turn sour & become a bitter experience for all concerned. The Franchisor must find the right Franchisee & therefore has a rigorous selection process to identify the right Franchisee.

Like anything in life, franchising does not offer a guarantee of success. But what it does offer is a formula that is not available to those who go into business alone. Buying a franchise means you are not starting out by yourself, you have the opportunity to build your own business through the guidance and systems of a proven organisation. The extent of your success will depend upon your own efforts and capabilities together with your motivation and enthusiasm to succeed.

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