What is franchising? What are its characteristics?

Franchising means that the franchisee provides a unique franchise to the franchisee according to the contract, and gives guidance and help in personnel training, organizational structure, business management and commodity procurement. The Franchisee shall pay the corresponding expenses to the Franchisee.

Generally speaking, franchising is a business model for franchisers to expand their business and sell goods and services.

The main advantages of this model are:

1, brand use, you can directly use the brands, trademarks and management technologies owned by the headquarters. Compared with taking charge of this matter, it reduces a lot of time, money and mental burden. For people who have no business experience at all, they can enter the business in a short time, which directly reduces the cost of advertising and product development in the early stage.

2. With successful experience, brand direct stores will be allowed to join on the basis of success. It will have a standardized system in all aspects of brand stores and accumulated successful experience for many years, which will provide a more favorable reference for store location, so that franchisees can take fewer detours and reduce time and capital costs.

3, advertising advantages, brand catering has a mature brand market, both products and visual hammers have been deeply rooted in the hearts of the people, joining brands do not have to consider playing the brand market, just enter the marketing link.

4, new product research and development, the headquarters will regularly develop new products, so that it may not be eliminated by the fast market of catering, if you want to develop new products, it will consume a lot of manpower and material resources.