USA
Buying A Franchise in USA
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Franchising in the US
Franchising is the licensing out of a business name, product, technique, philosophy, trademark, etc, for a percentage of the income. Instead of setting up new outlets as part of your expansion, you license your existing business blueprint out to franchisees who then set up and manage it for you.
The benefits of franchising your business in the USA include: more freedom, as the franchisee takes on major responsibilities; minimal expense; lower cost and higher profits; potential for fast growth; brand building.
Disadvantages of franchising a business in the USA: although few, rely predominantly on your franchisees. They include: poor quality franchisees; franchisees not declaring all income; poor performance.
The business format franchising has been representing the driving tool to start franchising in the USA since 1950. Around the middle '50s the first McDonald's, Pizza Hut and Kentucky Fried Chicken restaurants were opened. Since then, the franchising formula has never ceased to an extremely successful and profitable way of starting a business in USA.