¡Franquicias y Oportunidades de Negocios para Hispanos!






Noticias de Franquicias


Diciembre 7, 2010

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Franchises and Business Opportunities - How Do They Differ?

Are you looking to start your own business? There are lots of opportunities out there, so let's see if we can set them apart so that you know what is what. For instance, do you know what a franchise is and how it is different from other business opportunities?

Webster's dictionary defines a franchise as the right or license granted to an individual or group to market a company's goods or services in a particular territory. In a case where you would undertake a franchise, the business has usually already been proven a success. A contract is entered into by both the franchisor (the one selling or granting the franchise) and you, the franchisee (the one purchasing the franchise.) The contract discloses what the franchisor is making available to you and what you are required to do as far as running the franchise. If you wish to do anything differently, you will have to get it approved by the central office of the franchise company. As the franchisee, you will pay the franchisor a share of each sale as well as a charge for advertising and promotional fees.

If you choose not to go the franchise route and settle on a licensed business opportunity instead, you will find that there are some similarities. After all, they are both business opportunities. You will find, though, that it isn't necessary to pay the royalties and other fees that are required with franchises. So, this means the licensed business opportunity is usually less expensive to enter into. You will also find that there are not as many rules that you must follow. Many of these opportunities might include instructions and/or suggestions, but these are not requirements, and you can choose to implement them or not.

Some examples of licensed business opportunities might include setting up a booth at a local mall or shopping center. There are also many business that can be based at home. Several lines of make-up or cosmetics sell licenses and provide you with what you will need to start your business.

The fast food industry provides many examples of franchise opportunities. The well known names of some of these franchises all but guarantee success.

The main thing to remember is that either of the two, franchises or licensed business opportunities, has its pros and cons. It is on your shoulders to do the research and use it to determine which is the right choice for you.

Check our franchise and business opportunities

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