There are two kinds of franchises that are usually offered:
* A job franchise - The franchisee does the work that provides the service to its customers.
* A management franchise - The franchisee organizes others to do the work.
If you decide to buy a franchise you must understand the difference between these two so that you can match your skills to your choice of business strategy.
Franchise Contract Requirements
* To minimize unfair competition in the event of two companies with the same name or product franchisees are often restricted to certain areas of operation. This way all parties involved make more money.
* The contract may impose certain quality or service standards on the franchisee to maintain the excellence of the brand name and image.
* Always read and understand the contract thoroughly. In some cases business owners have found themselves having to sell back to the franchisor after the cost of mandatory supplies have become unaffordable. Ask experts for help if you need it before you buy a franchise.
* Changes to a franchise contract are uncommon. It is standardized across the board and addendums are not always welcomed.
