A franchise without investments is one of the modern ways of doing business. In this case, it implies the rental of a promoted brand and the ability to apply a ready-made business model. At the same time, the franchisor receives a fee for providing a business system and an initial payment for the right to use the brand. Therefore, a franchise without investments still requires a certain amount of funds.
Despite this, this option of starting your own business is a great opportunity to earn money for beginning entrepreneurs. In addition, there is a free franchise, which appeared due to global competition. To introduce goods or services to new markets, a new business scheme was developed - a franchise without investments. But the lack of capital does not at all mean that everything will be simple. Quite strict requirements are put forward for future partners: the presence of certain skills, the ability to communicate with people and so on.
Franchise implementation process
A franchise with minimal investments related to retail trade involves the formation of a partner by the director of the company in accordance with the labor code or contract. In this case, you are the rightful owner of the business, but at the same time, you cannot change the company’s policy, choose suppliers, regulate expenses, etc. You sign a contract with the franchisor, which addresses your rights, obligations and terms of cooperation.
After the contract is concluded, you must find a room, taking into account all the requirements of the company, collect the necessary set of documents and organize an advertising campaign. The arrangement of the premises and the delivery of goods are the responsibilities of the franchisor.
Benefits
A franchise with small investments is a very promising area. Its main advantage is that you do not have to spin up your business from scratch. No need to develop a business plan, analyze the market. All this has already been done by a company selling you a franchise. All that is required of you is to acquire a license that gives you the right to work under a promoted trademark, and set up your business so that it makes a profit.
A franchise without investments is possible in almost all sectors of small and medium-sized businesses. Such a business management scheme is beneficial and interesting for both parties signing a cooperation agreement.
In addition, the franchisor provides its partner with all the necessary equipment, raw materials, materials and so on. The main company helps to choose the right place for the location of your outlet, solves commercial problems, assists in the selection and training of personnel.
Minuses
The main disadvantage of the franchise is that your business will be directly related to the market position of the main enterprise. Any negative changes in the work of the franchisor will affect your business.
It is also worth noting the limitations provided for in this business scheme. You will have to coordinate almost all your decisions with the management of the main company.