Franchise Opportunities Key Terms

Multiply your franchise terminology with these key terms

By Loraine Degraff, Freelance Writer/Playwright

Joining a successful franchising business is the most reliable way to open your own business. Purchasing someone’s operating franchise allows you to skip over the start-up phase when profits are usually very scarce. In addition, franchise companies usually provide extensive training and support to help their franchisees succeed. Taking the franchise route also makes it easier to obtain money from banks and other lenders. These organizations are more apt to offer a loan when a proven business formula is already in place. Knowing franchise and franchise opportunities terminology is a huge part of the learning process of running a business.

Franchise business plan

The franchise business plan is an outline of the company's goals and objectives and how they will be implemented to achieve business success. The plan is often designed to solicit funds from banks and other investors.
Try: Inc explains the difference between a franchise business plan and a traditional business plan. Visit TLManage to learn more about the franchise business plan and how to write one.

Franchise relations

Franchise relations refers to the relationship between the franchisor (individuals leasing the business) and the franchisee (individual or individuals purchasing the business.)
Try: Visit FranchiseKnowHow for a better understanding of franchise relations.

Franchise mediation

Franchise mediation is a procedure that uses a neutral mediator chosen by all parties to help them reach an agreement. Franchisers and franchisees who seek to settle their disagreements via franchise mediation are usually both satisfied with the outcome of events. Franchise mediation also helps eliminate lengthy and costly court battles.
Try: Learn more about franchise mediation and its advantages at BNET.

Franchise financing

Franchise financing is the process of gathering funds for franchise investing. In the United States, this process falls into three basic categories: SBA (Small Business Administration) loans, non SBA and Specialty Franchise Financing and franchise company financing.
Try: Franchise start-up costs vary from business to business, but there are options available for franchise financing. Visit Businessfinance.com for an explanation of the different funding options. Entrepreneur expounds upon the four necessary principles for obtaining franchise financing.

Franchise evaluation

Some franchisors require franchise evaluations to make sure you are capable of owning a franchise. There are many areas that prospective business owners should be familiar with and a good understanding of business and financing is pertinent. Franchisors require franchise evaluations to help determine your knowledge of these topics. They may also use these evaluations to help match talents, skills and strengths of prospective owners.
Try: Visit FranGuides for a better understanding of the franchise evaluation process. Perfect Business offers a checklist of franchise evaluation criteria.

Branding

Branding is the business strategy of identifying yourself and making your products or services known to potential clients as the best ones available to meet their business needs. Branding and franchising go hand in hand, as franchising is one of the easiest ways to build brand name recognition and a strong brand name will, ultimately, help with the success of the franchising company.
Try: Get a better understanding of branding by visiting Brand Identity Guru.