January « 2009 « Fresh Idea

30Jan/090

The franchise agreement

The franchise agreement forms the basis for your relationship with the
franchisor. Therefore, it must state clearly and in adequate detail
the rights and responsibilities of both parties to the agreement.
Anything that’s ambiguous should be clarified at the outset. Waiting
until later to straighten it out can have unfortunate consequences.
Make sure that you are willing to accept all of the provisions
contained in the contract. Once you’ve signed the agreement, you will
be bound by it. If you find a clause unreasonable, try to have it
deleted from the contract or modified. Barring these possibilities,
you may decide not to enter into an agreement with the franchisor. The
best way to protect yourself is to obtain the advice of your own
attorney before signing any papers.

The franchise agreement merely sets down on paper the terms and
conditions of the franchise relationship. As such, it isn’t to be
regarded with awe but is to be explored as fully as possible. Don’t
let a lot of pages or legal jargon keep you from gaining a complete
understanding of the agreement’s contents. The best way to avoid
getting burned is to enter into the relationship with your eyes open.

Filed under: Professional image No Comments

22Jan/090

Franchise for Business

An alternative to forming your own business from scratch is to
purchase a franchise. Franchising is a method of doing business
whereby a company or we said the franchisor grants to others of the
the franchisees the rights to produce, sell, distribute, or market the
company’s products or services. In so doing, franchisees are permitted
to use the franchisor’s name, trademarks, reputation, procedures, and
selling techniques. To obtain these rights, each franchisee agrees to
pay the franchisor a sum of money (the franchise fee), a percentage of
annual gross sales, or both.

Many franchisees agree to purchase equipment or supplies from the
franchisor as well. Franchisors view franchising as a way to expand
their businesses without having to rely on loans or stock issues to
raise capital. In addition to providing expansion capital, franchisees
generally can be counted on to bring high levels of energy and
commitment to the company, particularly if the going gets rough.

Filed under: Corporations No Comments

21Jan/090

Export Import

If you decide to move into the international marketplace, then you need to choose your entry strategy. There are a number of strategies you can use, each one requiring a different level of investment and risk.

The quickest way to enter the international marketplace with the
smallest investment of capital and the least risk is through exporting
and importing. Selling your goods and services to buyers overseas or
bringing foreign-made products into the United States. The most common
entry strategy, this move is often prompted when a business starts to
receive requests for product information from foreign buyers or
discovers a product overseas that its U.S. customers might like.
Whether handled on a limited basis by your business itself or on a
wider scale through foreign agents and distributors, this method is
easy to employ. Also, because any losses are limited to the value of
the goods themselves, the level of risk is minimal.

Filed under: Knowing competitor No Comments

16Jan/090

International Marketing

As geographic distances continue to shrink with each new advance in
technology and transportation, international marketing is becoming an
increasingly attractive source of revenues for businesses large and
small. For all its appeal, though, international marketing isn’t
something to enter into casually. Finding the right foreign markets
for your goods and services takes time and research. Also, because
consumer needs and preferences often vary from one culture to another,
expanding globally may entail modifying your product offering,
changing its name, characteristics, appearance, packaging, pricing,
advertising, or distribution methods to satisfy local trends.
High-tech products can run into compatibility problems with existing
products or systems in place in a country, or they can end up being
too advanced for some markets, while technologically inadequate for
others.

In shifting your attention back and forth between the global
environment and your domestic business, keep in mind that a foreign
market that’s desirable for one business may not be for another with
different objectives, products, or resources. It’s important to make
sure that the opportunities you pursue are in sync with what’s best
for your business and will take it in the direction you want.