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Development formats and agreements in franchising can be divided into two broad categories: Single-unit franchising and Multi-unit franchising Single-unit franchising : an arrangement by which the franchisor licenses the franchisee to operate the business from a single outlet. Single-unit franchising is the most common form of franchise and gives the franchisor the greatest degree of flexibility and control over the franchise system. Multi-unit franchising : an arrangement by which the franchisor licenses the franchisee to operate the business through multiple single-unit outlets based on a development schedule. Multi-unit franchising is becoming more common as it maximizes the franchisee’s profit potential and allows the franchisor to expand the brand in a specific territory. Successful franchisees often look to buy more than one franchise unit from the same franchisor. A multi-unit franchisee may pay an up-front franchise fee (at a discounted rate) for each franchise unit that t...

The Franchise Cost Can And Will Determine The Duration Of Your Time In Business There are several key factors when looking at the initial franchise cost of any business. Determining your investment will be based on your specific goals with that particular business model. Knowing the amount of marketing costs, initial business setup (materials, equipment, inventory, staff, insurance, etc.), your competition whether local or virtual, and most importantly the ROI (return on investment). An initial franchise cost can set a new business owner for a fast return on their investment or a possible positive return on investment that can be delayed for years to come. Unfortunately, the current economic situation that not only this country is struggling through but every other country in the world as well, also has a determining factor in a duration and profit margin of any young franchise. But there are some industries in which their initial franchise cost is still considered to be in the profita...

The Keys to Franchise Business Owner Success The value of the brand, the location, the support provided by the franchisor, the quality of the product or service, local competition, and the economic climate…they all influence business success. We would expect the potential small franchise business owner to investigate these factors thoroughly as part of the due diligence process. But the greatest variable of all is the small franchise business owner himself or herself, and his or her skills in managing the business. If you have never run a business before, how do you know that you have what it takes to be successful? It behooves the potential small franchise business buyer to extend the due diligence process to include an objective self assessment, something not usually done in any formal way by the franchise buyer. Evaluating your Entrepreneurial Aptitude is a great way to measure probable success as a Small Franchise Business Owner. Entrepreneurial aptitude may not be what you th...