Getting to know a Franchise or Franchise Business

The presence of the Modern market in society opens everyone's eyes, especially mini markets, until now they still survive with the type of selling daily necessities, it's commonplace but participating in owning shares maybe not everyone knows the name of a franchise or franchise, you open a business not from scratch but partner or cooperate with a well-known brand or brand, either by buying shares or by joining capital if translated as franchise or franchise, is cooperation in a business with a profit-sharing system following the agreement, management and marketing rights, based on the above understanding, it means that franchise or franchise is as if opening a new branch or brand. but the owner is someone else with a cooperation agreement.

Why choose this business field, nowadays making a brand, for example Indomaret or Alfamart, is very difficult to develop, our first advantage has been seen that everyone knows this brand and is popular, then we just have to learn from the franchise team where the supplier of goods is, how to pay , stock and all production and marketing knowledge, you learn free lectures without paying, no need to look for permission anymore and all administrative matters, all bookkeeping systems already have a billing system, you just use it if you count you are lucky, you just have to pay and it's open for a week, easy isn't it, imagine if we open it ourselves, all of us who think it's very complicated and complicated, we just have to follow the training together with our prospective franchise employees, practical and efficient, this business rarely loses because the trademark is already well known and between these brands are already competing so they race to serve which customers better and franchise business in Indonesia in Sis has been around for decades, so the bittersweetness of the business has been passed and we will be trained specifically and professionally. They don't want the bran to fall just because we are just starting. during this pandemic they were always able to open, even though they never opened because of government policy they obeyed once the ban was lifted they reopened, there was a friend of the author who closed his salon and made this franchise business and was more successful than his salon business, the author suggests for those who want to try this type Franchise franchise businesses need to be taken into account to try, it is proven that this year they are still standing strong against the rigors of business competition in the minimarket and modern markets. Definition of Franchise

Franchising is an agreement that binds two parties, where one party in the agreement gets the right to utilize intellectual property, including selling goods and services by giving rewards to the other party based on a certain agreement.

The word franchise itself is taken from two words, namely and profit. The word has more meaning, while the word profit has the meaning of profit.

In franchising, there are two parties involved, namely the franchisor and the franchisee. The franchisor is the party who gives rights to other people to be able to take advantage of their intellectual property or sell and use the products and characteristics of the business they own. While the franchisee is a business entity or individual who has the right to use the intellectual property provided by the franchisor.

When developing a franchise business, the franchisee will be burdened by two types of fees, namely the initial fee and the royalty fee. Initial costs are costs incurred to pay for the manufacture of business premises and capital purchases of raw materials in accordance with predetermined specifications.

Then the royalty fee is the fee paid by the franchisee to the franchisor, usually taken from the gross income of the business and paid every month. Generally, royalty fees are 5 to 15 percent of the franchisee's gross income.

In the process of cooperation between the franchisor and the franchisee, the franchisor can provide the necessary direction and guidance to the franchisee. This direction can be in the form of business techniques, how to make products, forms of marketing, and how to use predetermined designs.

The franchisee also has to pay royalties, he must also comply with and respect the concepts, specifications, or regulations that have been set by the franchisor.

Franchise History

Before becoming as popular as it is today, franchises have had a long history. Franchising was originally introduced around 1950 by Isaac Singer. Isaac Singer is the maker of Singer brand sewing machines. At that time, he wanted to increase his sales. Although Singer's efforts failed, he was the first to introduce a franchise business model.

Isaac Singer's sales method was imitated by other businessmen. Those who follow the Isaac Singer franchise model are said to have achieved quite a bit of success. One of the first to follow him was one of the automotive industries in the United States, General Motors Industry in 1898. While one of the followers of the most successful franchise business model was the founder of Coca Cola, John S Pemberton.

After that, franchises were more widely used for fast food restaurant businesses such as McDonalds, A&W, and others. The main idea of ​​franchising was to allow business partners to use the same name, menu, even logo and design. This idea will later be exchanged for a certain number of payments.

Until now, the franchise business model continues to experience improvements and refinements. In the 1950s, franchising accounted for 35% of the total retail business in the United States. This business is quite attractive because it does not recognize discrimination and SARA, and upholds mutual benefits.