What is franchising? The word “franchising” is etymologically descended from the 14th century Anglo-French word, “franchir,” which means “to set free.” One could therefore speculate that the franchising business model is based on a “setting free” or “liberation” of sorts.
Strictly speaking, the correct response to the question, “What is franchising?” is that it is a business model by which an individual gains the right to market the products or services of a given company for a specified period of time in a specified place.
Franchising has existed for a long time. Some say that franchising goes back to America in the mid-19th century, when Albert Singer founded the Singer Sewing Machine Company. Singer would distribute his company’s sewing machines to customers far and wide and train them to use them. He would also sell entrepreneurs licenses that gave them the right to distribute the Singer sewing machines. However, there is evidence that franchising was practiced before that in Germany, among German brewers who conferred upon particular taverns the right to sale their ale.
Others trace the concept of franchising much further back in time, specifically to the Middle Ages. They view the practice by which leaders granted people the right to operate various commercial interests as a precursor of the present day practice of franchising. Perhaps a better example is that of the church and its expansion through Europe. Some might consider it offensive to describe the church as if it were a business, but there are certainly parallels to speak of. One might say that these parallels prove that successful ideas can be adapted to all sorts of situations.
Reconsidering the Question “What Is Franchising?”
However one chooses to answer the question, “What is franchising?” it is widely agreed that it is a popular business model. The success of franchising can be attributed to a number of factors that make it easy for entrepreneurs to get established in business. To begin with, franchising involves selling goods and services to a pre-existing market. Hence, one does not have to create a customer base from scratch. Also, with franchising, a successful business model has already been established, as has a brand name. Furthermore, the franchisor or originator of the franchise often invests in training the entrepreneurs to whom he or she sells the franchise. All of these factors save entrepreneurs time and resources.
So, in response to the question, “What is franchising?” one might respond that it is an innovative idea that has the proven capacity to “liberate” hardworking entrepreneurs and make successful businessmen out of them.
Asking yourself “What is franchising” is the first step toward an exciting and successful business of your own.
Asking what is franchising is a great start on your own small business. There are a lot of great reasons to start your own business. The independence of working for yourself and the ability to make big money are just a couple of great reasons. No matter how you plan to launch out into the world of small business, you have to know what you are getting into. That is where that simple question, “What is franchising?” is a perfect one to ask.
What is franchising is a question that often brings up images of very popular franchise operations like Starbucks and McDonalds. But the diversity of franchise opportunities in the business world today is much greater than just the big ones that everybody knows about.
What is franchising? It is an opportunity to get on the fast track to starting your own business. It is a way to cash in on the popularity of a larger and more well established business by buying a franchise from that business and launching your own office or store that you own and run.
What is franchising? It is a partnership between you, the owner of the franchise and the business that you bought the franchise from. You can tap all of the wisdom and experience of the chain and exploit the popularity of their products or services. It is a fabulous way to build your own business and a much safer way than launching out from scratch on your own.
What is franchising also means what franchising is not.
Through a series of franchise agreements, you enter into that relationship with the franchising company. However it is just as important to know what franchising is not as to know what is franchising in the first place. There are a ton of misconceptions about the idea of franchising so getting those out of the way early on is one of your tickets to success.
When you address that question of what is franchising, understand up front that is not a free ride. You will work your tail off building your business. While you are getting a jump start on your small business by buying into a successful franchise operation, it is entirely possible to fail at running the business. By putting plenty of hard work and effort into your new franchise business, however, you can see plenty of success and even expand.
It is also important to remember when you are answering the question, “what is franchising” that you are not going it alone. If anything, you are buying a ton of help and knowledge about how to be successful. Your partners in the franchise selling agency will be able to help you with how to structure everything from your franchise operations manual to the policies and procedures of a successful small business to how make customers love you.
Owning your own franchise is not about going it alone. Plan to tap the power of that partnership for all it is worth. When you do, you will see success beyond your wildest dreams. You win, your franchise partners win and your customers will to. That is the kind of small business anybody would envy.