Speaking the franchise talk can seem confusing at first. Especially if you’re fresh to the business world.
To make things easy, we’ve put together this list of common franchising terms that will make perfect additions to your vocabulary.
Franchise / franchising – a method of distributing products or services involving a franchisor, who establishes the brand’s trademark, trade name and business system, and a franchisee who purchases the right to do business under the franchisor’s name and system. In short, franchising is a business relationship.
Franchisor – an individual or company that sells or grants a franchise for the sale of goods or services. The franchisor (individual or company) is the original or existing business owner who is selling the rights to use its name and idea.
Franchisee – an individual or company that holds a franchise for the sale of goods or services. In short, a franchisee is a small business owner who operates a franchise.
Business Plan – a plan that discusses the objectives for the business and how to achieve them.
Franchise Agreement – this is the contract you sign with a franchisor. It outlines the duties of the franchisee and franchisor. Franchising is popular and successful as the business model is developed and tested by the franchisor before being franchised.
Franchise Fee – a once off lump sum paid by the franchisee to the franchisor upon signing the franchise agreement. This payment can be seen as compensation for the experience, training, and right to use the brand name of the franchise.
Trademark – this is the marks, brand name, and logo etc. that identify the franchise. They are licenses to the franchisee for use.
Want to learn more?
Owning and operating a franchise is no small step. If you feel like you are ready to make a move in your career, it is always a good idea to speak to people with the industry you are considering – both franchisees and franchisors. You will be able to learn about their experiences, what they may have done differently and what aspects of the franchise life they enjoy most. You may also find it useful to browse through our extensive assortment of franchise blogs here: www.homesorted.com.au/category/home-sorted/
It would be amiss of us not to mention our own franchising opportunity. Due to the increasing demand of home organising in Australia, Home Sorted! are seeking like minded individuals who are excited to turn their hobby of organising into a career.
We have a well-structured business model that delivers improvements to our clients’ home life each and every time AND ensures regular business.
To learn more about becoming a Home Sorted! franchisee, simply visit our website to request further information: www.homesorted.com.au/franchise-opportunity-2/