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Have you considered franchising your business
If you are thinking about franchising your business you can step off on the right path by arranging a preliminary assessment meeting with New Zealand’s leading consultancy for designing, structuring and starting a franchise business network.
Not sure how franchising works? Talk to the experts.
An example we are all very familiar with is the McDonald’s franchise business model, also known as business format franchising. McDonald’s, the franchisor, grants the right to sell McDonald’s branded products, following an aligned business format, to someone wishing to set up their own business, the franchisee.
The franchising organisational form has enabled McDonald’s to expand their restaurant chain, domestically and internationally, to a network now comprising more than 37,000 units. This would be otherwise unachievable through company-owned expansion alone.
Under a McDonald’s franchise, McDonald’s owns or leases the site and the restaurant building. The franchisee buys the fittings, the equipment and the right to operate the franchise for twenty years. To ensure uniformity throughout the world, all franchisees must use standardised McDonald’s branding, menus, design layouts and administration systems.
Franchisees pay McDonald’s an initial franchise premium for that right to operate the franchise, and then ongoing monthly franchise royalties and premises rental payments.
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Get our Franchise Advantage Guide – What you should know about starting a franchise system. An introduction to franchising, includes answers to common questions, and provides insights into key franchising steps. You should read this free booklet if you’re wondering if your business can be franchised, whether franchising is the right strategy, and what is generally involved in creating a franchise system.