A Quick Look At The Franchise Opportunities In Canada

Written By Unknown on dimanche 7 octobre 2012 | 05:06

By Doris Rivas


Companies carry out market analysis with an aim of establishing the gaps in the markets. After the unfulfilled needs have been established, the firms goes ahead to produce the products which will lead to the fulfillment of their needs. Franchise opportunities in Canada offers a cheaper avenue of establishing businesses while reducing the costs related to investments and failure. A start-up firm uses a very established brand to get into the markets.

The cost of the franchise name is determined by the parent. This is mainly a fraction of the total revenues generated under the brand. Franchisee issues out the right and permissions to the franchiser to exploit the brand under agreed conditions. The franchiser the goes ahead to set a business which is registered under the name of the brand. By setting up distribution lines under such names, liabilities of various forms are avoided. The investments and setup costs are avoided.

There are a number of successful business lines. Most of these are either in the distribution lines and retail business. The success of the franchisee is replicated throughout the chain. If the franchisee is very successful, the franchiser benefits from this since the products are sold under a branded name. The franchiser can also revamp the name it is using if the brand is not performing well. Revamping comes in different forms. Some of the franchisers opt to make a different product or diversify under the same name.

Regulations issued by the government forms a special framework. The framework is used to harmonize the trading and market activities of the franchising business. The department of commerce also issues laws that provide an even ground for the firms in business. In some regions, the franchising firms form associations that will be taking care of all the issues relating to mergers and acquisitions. The stock market and other organizations in charge of financial markets can also issue a frame work of doing the business.

A contract must be entered into when on either of the parties are getting into business. The franchisee issues the frame of operation. The brand name and all the business structures must be maintained by the franchiser. The conditions to be met during the operations are clearly laid out in the clauses within the contract. The franchiser should abide to these regulations to avoid losing the rights to use the name of the parent.

Technology has changed every aspect of our lives. With the technology, most of the work has been automated. This has provided the business people with many opportunities. The start-up costs for technologically related businesses are very costly. For this reason, setting up a franchise using established names is a good idea.

Communication sector also offers numerous opportunities for the Canadians. Instead of setting up telephony business from scratch, the investors can opt to set up communication franchises. The investments costs are reduced since only the license for the operations will have to be paid for. Costs are incurred by the franchisee. Revenues are shared among the franchisee and the franchisers under the agreed conditions.

International firms form a larger segment of retail and distributing business. The distribution channels can be expanded through franchise opportunities in Canada. The local firms understand how the market forces operate. Since they have an upper hand, they could form distribution and retail lines with these firms to penetrate and increase their share in local markets.




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