What are Business Franchises?
According to the International Franchise Association (IFA), a business format franchise is when a franchisor provides for the franchise owner a complete business plan. “The plan provides step-by-step procedures for major aspects of the business and, anticipating most management problems, provides a complete matrix for management decisions confronted by the franchisees. The major advantage of buying a business format franchise is that the ‘system,’ the means for distributing goods and or services, has been developed, tested, and associated with the trademark. ” Another great benefit of this type of franchises is the quick growth potential it offers, according to the IFA.
