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Submitted 2014-03-04 12:20:06
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Article From Article Directory Database America
is often mischaracterized as a land of giant corporations and big businesses.
But the truth that it is a nation of small businesses, many of which started out
as franchises. McDonald’s, for example, wasn’t always a global restaurant chain
that serves 70 million people a day in over 100 countries. It began as a
hamburger stand that was founded by the McDonald brothers in San
Bernardino
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California in 1940. At the time, franchising was a fairly new concept, but the
company took it to a completely different level.
What is
franchising?
Although it comes from a French work that means “free,”
franchising is anything but. The practice is based on the idea that anybody can
be successful if they work hard and follow a proven business model. A company
like McDonald’s not only gives its franchisees access to it food and special
recipes, it also teaches them how to operate their stores efficiently. Not to
mention the fact they will receive all benefits the brand conveys. Most
importantly, of course, is a loyal customer base that will stop at any store
because they know and enjoy the products they serve. For those reasons, and many
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has gone from a gimmick to a respected business practice in the United
States.
According to the U.S. Census Bureau, franchise businesses now
account for 10.5 percent of American businesses with paid employees! There are
tens of thousands of franchise in America, but only a small percentage of them
go national, and far fewer go global. In this article we will discuss what it
takes to start a successful franchise.
Look before you
leap!
Contrary to popular believe, franchising your business is not
always a good idea. Even if your first few stores are successful, there is no
guarantee that stores that are controlled by strangers will make you money. In
fact, they could end up sullying your reputation if they run them poorly.
It is also important to note that being a franchisor is not a worry-free
job. You don’t simply hand your new franchisees your business model and let them
figure it out on their own. All successful franchises, from McDonalds to
Subway
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ensure that they maintain a consistent level of quality and service. In other
words, if you don’t have the time to teach others how your business became
successful, do not franchise it!
Hire a good franchise law
firm!
Successful franchises don’t
gi.
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