Btob:

A franchise is defined as “A licence granted by the franchisor to operate a particular business using the franchisor’s name, where the franchisor provides assistance to the franchisee, exercises continuing control and receives periodic financial consideration from the franchisee for the services provided.”

Although most of us are familiar with fast food franchises such as McDonalds few of us know the first modern franchise was developed by the Singer Sewing Machine Company in the United States in the 1860s.
International comparisons show franchising is the fastest growing form of retailing with 50% of merchandising sales in the United States attributable to franchised businesses.

In New Zealand the figure is around 15% with a growth rate of around 25% per annum.

Things to think about if you want to become a franchisor:

* Are you honest?
* Do you have a strong sense of ethics?
* Are you financially stable?
* Have you tested your potential franchise format in the market conditions into which your franchisees are likely to trade?
* Is your package complete and ready for franchisees to run with?

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