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Business and Legal
You may think about going into business for yourself but the failure rates of independent businesses dampen your desire. Everyday you walk along the street or shopping at a department store, you see many franchise business shops such as 7-eleven, Aki-ko, Tsutaya, Jaymarts, Pizza Hut etc. and most of those business are very successful. Why? And What Franchising is ?

Franchising is successful because most of us are people of habit and are brand-driven when we purchase goods and services. We trust brands that we see everywhere, every day. We tend to be loyal to a product or service delivered to us the same way all the time.
What Is Franchising?
  1. Franchising is a business strategies a company may use in capturing market share.
  2. Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company’s products and services can help them. It is a method for distributing products and services that satisfy customer needs.
Concept of Franchising
You as a franchisee are buying a franchise. In reality you are investing your assets in a system to utilize the brand name, operating system and ongoing support. You and everyone in the system are licensed to use the brand name and operating system.

As a franchisee you own the assets of your company, which you have chosen to invest in someone else’s brand and operating system and ongoing support. You own the assets of your company, but you are licensed to operate someone else’s business system.
Other franchisees and company operated units are not your competition. The opposite is true. They and you share the task of establishing the brand as the dominant brand in all markets entered and reinforcing the customers’ familiarity with and trust in the brand. So in this respect you are working as a team with others in the system. Other franchisees share with you the responsibility for quality, consistency, convenience, and other factors that define your franchise and insure repeat business for everyone. Increasing the value of the brand name is a shared responsibility of the    franchisor and franchisee.
Investing in a Franchise
In reality you are taking your assets, which you own, and investing them in someone else’s brand and operating system. You will always own your assets. You will always own your corporation. But you will do business as a licensee of the franchisor.
Before You Select A Franchise...
Step 1: Evaluate Yourself
Your job is to make an informed business decision about whether a franchisors business opportunity meets your needs and whether you can provide what the franchisor wants and needs in a franchisee.
Step 2: Evaluate the Franchise Opportunity
1. Evaluate the legal documents from a business perspective.
Look for a franchisor who can communicate a strategy not just for market presence but for dominating markets.
3. Evaluate the marketing/advertising fee.
4. Evaluate the effectiveness of the Franchise Advisory Council.
5. Be sure you can answer these questions.
5.1 How will I make money in this business?
5.2 How long did it take them to recoup their investment?
5.3 How much money are they making?
5.4 Does the operating system work?
5.5 Are they provided with good marketing programs?
5.6 Do the franchisees get along well with each other and with the franchisor?
5.7 What are the major problems with the business?
5.8 Do they use all of the operating system?
5.9 Is the franchisors ongoing support adequate and helpful?
Step 3: Evaluate the Franchisors Business Plan
The franchisor should have a business plan for the system that covers at least the length of the agreement you are being asked to commit to. What you need to ask are
1. For the plan for the market where you are going to locate the operation.
2. For their analysis of the competition.
To look at the operations manuals or at least to see an outline of them. You need to feel comfortable that they are complete and clear and meet your abilities, needs, and goals.
4. To receive a full explanation of the initial and subsequent training programs.
For a full explanation of the pre-opening assistance offered by the franchisor. Understand any help franchisors give for site selection and lease negotiation.
6. About what ongoing support the franchisor provides to the franchisees.
Need consulting contact MVP International Law Office & Associates Co.,Ltd