Franchise Business That Can Be Profitable For Business People – Very profitable for business people to do franchise business, it is very necessary to know this very profitable business to be carried out by business people or from non-business circles
Franchise or franchise is one type of business that is currently popularly run by everyone because it is considered to be able to generate substantial profits and requires a large enough capital as well. Franchise business is an alternative business for business entrepreneurs to develop their business so that their reach is wider in the community and can determine their own procedures.
Actually, what is a franchise? why can this business concept be known to generate huge profits?
Before explaining in detail, it is necessary to understand in advance that there are two terms in the franchise business, namely franchisor and franchisee. Franchisor is a term intended for parties who act as entrepreneurs, while franchisees are parties who will become business partners of the franchisor. To be able to run a franchise business, the two parties above need to make an agreement that will create an engagement and be poured into a franchise agreement. A franchise agreement needs to be held because the franchisee will utilize and use intellectual property rights (IPR) including names, trademarks, copyrights for logos, industrial designs, and trade secrets of that party. In order to create a franchise, the franchisor must specifically meet the following conditions:
Does not require a legal entity, but will be subject to a fairly high tax collection when receiving royalties from franchisees
Required to have experience in business at least 5 years
Prepare a Standard Operating Procedure (SOP) which contains the quality and service of goods or services traded
Must be able to provide support to franchisees
Meanwhile, to create a franchise must meet several conditions:
Required to have unique business characteristics so that it can be distinguished from other businesses
Must be able to make a profit