Franchises Versus Licensed Business Opportunities
Franchises Versus Licensed Business Opportunities
First of all, a franchise is simply a business model that has been proven to be effective. The franchisor who created this business model will then sell you the rights to use the business model as well as the services or goods that particular system sells. Once you pay your franchise fee you will become a franchisee and have a relationship with the franchisor to assist you with the system. A franchise agreement will be signed and this agreement outlines the assistance the franchisee will receive through the franchisor and the business model. A franchise owner must pay royalty fees to the franchisor. Also, a franchise owner must follow the business plan exactly as it is. If any changes are to be made they must first be approved by the head office. Of course, with a franchise you will get a lot of support and a readymade plan to follow. Some franchises are better than others at helping their franchisees become successful, but most do everything possible because the name of the franchise is at stake. Marketing fees are also paid by most all franchisees to the franchisor. That’s because the franchisor is marketing and advertising the product/service to the benefit of all franchisees and they pay a yearly fee towards that.
A licensed business opportunity is a business opportunity not unlike a franchise, but it is set up a bit different. First of all a licensed business does not require royalties nor does it require that you pass off all decisions with the head company. A licensed business opportunity is generally significantly more affordable than a franchise. That’s because the license is all that is purchased, not the entire business model so there are no franchise fees, marketing fees, or royalties to pay. Most licensed business opportunities also do not require marketing fees. Many have graphics that may be used with instructions, but no set marketing fee that must be paid.
As you can see franchises and licensed business opportunities are not the same thing. They both offer the opportunity at a new business, but the way that business is managed and the fees that must be paid in association with the new business are significantly different. Keep in mind that there are benefits and drawbacks associated with both franchises and licensed business opportunities. You must weigh the advantages and disadvantages before making a decision to go ahead with any particular franchise or licensed business opportunity.
Franchises Versus Licensed Business Opportunities - To learn more about this author, visit Candice Clem's Website.
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When it comes to business there is a whole lot of lingo out there that can be confusing. One example is that of a franchise or a licensed business opportunity. Anyone looking for business opportunities must understand what a franchise is and what a licensed business opportunity is. This brief overview will help you understand the differences.
First of all, a franchise is simply a business model that has been proven to be effective. The franchisor who created this business model will then sell you the rights to use the business model as well as the services or goods that particular system sells. Once you pay your franchise fee you will become a franchisee and have a relationship with the franchisor to assist you with the system. A franchise agreement will be signed and this agreement outlines the assistance the franchisee will receive through the franchisor and the business model. A franchise owner must pay royalty fees to the franchisor. Also, a franchise owner must follow the business plan exactly as it is. If any changes are to be made they must first be approved by the head office. Of course, with a franchise you will get a lot of support and a readymade plan to follow. Some franchises are better than others at helping their franchisees become successful, but most do everything possible because the name of the franchise is at stake. Marketing fees are also paid by most all franchisees to the franchisor. That’s because the franchisor is marketing and advertising the product/service to the benefit of all franchisees and they pay a yearly fee towards that.
A licensed business opportunity is a business opportunity not unlike a franchise, but it is set up a bit different. First of all a licensed business does not require royalties nor does it require that you pass off all decisions with the head company. A licensed business opportunity is generally significantly more affordable than a franchise. That’s because the license is all that is purchased, not the entire business model so there are no franchise fees, marketing fees, or royalties to pay. Most licensed business opportunities also do not require marketing fees. Many have graphics that may be used with instructions, but no set marketing fee that must be paid.
As you can see franchises and licensed business opportunities are not the same thing. They both offer the opportunity at a new business, but the way that business is managed and the fees that must be paid in association with the new business are significantly different. Keep in mind that there are benefits and drawbacks associated with both franchises and licensed business opportunities. You must weigh the advantages and disadvantages before making a decision to go ahead with any particular franchise or licensed business opportunity.
Franchises Versus Licensed Business Opportunities - To learn more about this author, visit Candice Clem's Website.
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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