FRANCHISE BUSINESS ----------------------A franchise business is a business in which the owners, or franchisers, sell the rights to their business

logo and model to third parties, called franchisees. F ranchises are an extremely common way of doing business. In fact, it's difficult to drive more than a few bloc s in most cities without seeing a franchise busin ess. Examples of well- nown franchise business models include McDonalds, Subway, UPS, and H & R Bloc . In the United States, there are franchise business opport unities available across a wide variety of industries.To invest in a franchise, the franchisee must first pay an initial fee for the rights to the business, tra ining, and the equipment required by that particular franchise. Thereafter, the franchisee will generally pay the franchise business owner an ongoing royalty pa yment, either on a monthly or quarterly basis. This payment is usually calculate d as a percentage of the franchise operation s gross sales.After the contract has been signed, the franchisee will open a replica of the franchise business, under the direction of the franchiser. The franchisee will not have as much control o ver the business as he or she would over their own, but may benefit from investi ng in an already-established brand.Generally, the franchiser will require that t he business model stay the same. For example, the franchiser will require the fr anchisee to use the uniforms, business methods, and signs or logos particular to the business itself. The franchisee should remember that he or she is not just buying the right to sell the franchisers product, but is buying the right to use the successful and tested business process. The franchisee will also usually ha ve to use the same or similar pricing, in order to eep the advertising streamli ned. For example, if you saw an advertisement for $75 tax preparation from a wel l- nown tax preparation franchise, you would expect to find this deal in any one of the franchise operations you went into. Aside from using the business model determined by the franchiser, the franchisee will otherwise remain an independen t owner of the franchise.While there are many benefits to investing in an alread y-successful franchise business model, there are drawbac s as well. As with any investment you ma e, you should do your research thoroughly before you ma e any franchise purchasing decisions. If you are considering buying into a franchise, you should contact an experienced franchise attorney for further assistance..<a href="http://citiwide.com.au/">CitiWide</a> http://www.citiwide.com.au/ Loan enquiries : 1300 732 630 03 9326 6300 (03) 9326 6305 333 Queensberry Street, North Melbourne, Vic 3051 PO Box 189, North Melbourne, Vic 3051 loans@citiwide.com.au

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