Franchises

Related links P R Taxes Busines Licenses Corporations Banks

A franchise is a contract between a business organization (the franchisor) and an individual, group or business entity (the franchisee) which allows the franchisee the right to use the franchisor's business name to sell or rent its products and/or services. There are many well-known franchises operating in Puerto Rico, including 7-Eleven, Blimpie subs & salads, SuperCuts, gyms, office services, employment agencies and hundreds more.

There are numerous opportunities for doing business regarding franchises. Some of thesee are::

1. The franchisor, of course. If an entity has been successful while operating a business, franchising is one of the likely ways by means of which the business can expand. The franchisor needs to develop a plan to define the terms under which he would be doing business with franchisees. The franchisor would be selling to others the right to use his business name and sell his products and services. Normally, a franchisor charges an Òinitial franchise feeÓ and receives some type of royalty payments based upon the sales of the franchisee.

2.The franchisee pays a fee in order to have an instant business with a well-recognized name and the opportunity to earn money much faster. Usually, the franchisee needs to have specific amounts of money available for investment in the franchise fee and in the development of his franchised operation.

3. Specialists in franchising look for successful enterprises to show them the benefits of expanding their operations through franchising. They can prepare all the paperwork necessary to set up a franchising organization, do the marketing required, screen candidates and provide any other services the potential franchisor would require.

4. Other consultants in franchising would sell their services to potential franchisees. They might have lists of available franchise opportunities in a specific territory. Their services might include interviewing individuals and helping them identify a potential franchise based on their financial capacity, the type of business they would like to pursue from a list of options available.

5. Franchise promoters. Some entities earn their living by organizing expositions where franchisors pay in order to set up information booths with audio-visual aids and trained personnel to promote their franchises. Individuals pay to attend the expositions. Franchise promoters generally set up their expositions in large cities around the country.

If you cannot find the information you need,CONTACT US and we will try to help you find it.