We begin our inaugural podcast episode by answering a primary query, “What’s franchising?”
You’ll be able to learn the web page on the Worldwide Franchise Affiliation Web site the place the article that was learn on this podcast was sourced at: https://www.franchise.org/faqs/basics/what-is-a-franchise
Tom DuFore, Large Sky Franchise Staff (00:00):
In case you’ve been questioning methods to franchise your online business or methods to take your organization to the following stage, then this podcast is for you. The aim of our podcast is to share frequent jam packed episodes with helpful and sensible data to information you in your franchise journey. I’m your host, Tom DuFore, CEO of Large Sky Franchise Staff and a serial entrepreneur, and welcome to the Franchise Your Enterprise Podcast.
Tom DuFore, Large Sky Franchise Staff (00:24):
Welcome to the primary episode of the Franchise Your Enterprise Podcast and to get the entire sequence began I assumed it’d be nice to start out with defining what a franchise is. So what’s a franchise? And so to reply that query I assumed let’s go to the Worldwide Franchise Affiliation, the world main authority on all issues franchise-related. I assumed let’s see what they need to say.
Tom DuFore, Large Sky Franchise Staff (00:52):
So that is from the Worldwide Franchise Affiliation web site at franchise.org below what’s a franchise and right here’s what they wrote. “A franchise or franchising is a technique of distributing services or products involving a franchisor, who establishes the model’s trademark or commerce identify and a enterprise system, and a franchisee who pays a royalty and sometimes an preliminary price for the fitting to do enterprise below the franchisor’s identify and system.”
Tom DuFore, Large Sky Franchise Staff (01:20):
Technically the contract binding the 2 events is the franchise, however that time period extra generally refers back to the precise enterprise that the franchisee operates. The follow of making and distributing the model and franchise system is most sometimes called franchising. There are two several types of franchising relationships. Enterprise format franchising is the kind most identifiable in a enterprise format franchise. The franchisor gives to the franchisee not simply its commerce identify, services, however a whole system for working the enterprise.
Tom DuFore, Large Sky Franchise Staff (01:59):
The franchisee typically receives website choice and growth assist, working manuals, coaching, model requirements, high quality management, a advertising technique and enterprise advisory assist from the franchisor. Whereas much less recognized with franchising, conventional or product distribution franchising is bigger in complete gross sales than enterprise format franchising. Examples of conventional or product distribution franchising may be discovered within the bottling, gasoline, automotive and different manufacturing industries.
Tom DuFore, Large Sky Franchise Staff (02:35):
So subsequent headline says, “Franchising is about relationships.” Many individuals once they consider franchising focus first on the legislation. Whereas the legislation is actually essential, it isn’t the central factor to grasp about franchising. At its core, franchising is concerning the franchisor’s model worth how the franchisor helps its franchisees, how the franchisee meets its obligations to ship the services to the programs model requirements. And most significantly, franchising is concerning the relationship that the franchisor has with its franchisees.
Tom DuFore, Large Sky Franchise Staff (03:14):
So we’ll cease proper there for this primary episode and speak slightly bit about that. However mainly what we’re saying right here, a franchise and a franchisor is when there’s a enterprise being franchised in enterprise format franchising the place there’s a system and a model that one other particular person is allowed to make use of to function and run their very own enterprise below. And in order that’s our very first episode in the present day, of us.
Tom DuFore, Large Sky Franchise Staff (03:41):
Please, please, please be sure you subscribe to the podcast so that you get all of our future updates. And it’d be superior when you might go away us a overview, particularly as we’re simply creating this. And bear in mind when you or anybody you recognize is likely to be we’re able to franchise your online business, please contact us at bigskyfranchiseteam.com. Thanks for tuning in and we sit up for seeing you again right here on our subsequent episode.