What is a Franchise?
Have you ever found yourself asking, "what is a franchise?"
Allow me to start by providing you with a somewhat in-depth definition of a franchise, which comes from the Intellectual Property Office. They state:
"A franchise is the agreement or license between two legally independent parties which allows a person or group of people, called the franchisee, the right to market a product or service using the corporate image, registered and unregistered trademarks, know-how and show-how, products, registered and unregistered designs, marketing and promotional material and in some instances, patented technology of another business, called the franchisor.”
In more simple speak, this means that:
A franchisee can purchase his or her own branch of the existing business with an initial investment
Make a business plan, and sign a franchise agreement in order to expand the franchise for his or her own financial gain as well as the company’s. The franchisee then has the right to market a product or service, like laser hair removal, using the proven successful marketing and operating methods of the franchisor.
The franchisee has the obligation to pay the franchisor for the benefit of using the brand’s trademark and other rights. However, this is what the initial investment covers. CoLaz then must be committed to providing you with the necessary support required to help your franchise succeed.
What Are the Different Types of Franchises?
The answer to “what is a franchise,” can also be a little confusing the first time you hear it, simply because there are several different types of franchises out there. Here are a couple of main ones:
A product distribution franchise only sells the franchisor’s products and these are closer to supplier-dealership relationships. Examples of this kind of franchise would be retailers selling Coco-Cola or automotive dealerships being vendors of Dunlop tyres.
A business format franchise is the alternative
And this type of franchisee uses a company’s product, service, trademark, and complete methods for business operation and conduct. It is this type of franchise that CoLaz salons offer to franchisees.
There are also two different types of franchise agreements available, a single-unit or multi-unit franchise. A single-unit franchise allows an owner to only open and operate one branch or location. This is the simplest and most common type of franchise, and is the type that CoLaz operates. To learn more about a CoLaz franchise or for other inquiries, click here.