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Five Key Steps for Franchising Your Business in 2013 - An Executive Briefing by Newport Board Group, a National Business Advisory Firm of CEOs
Date:7/17/2013

San Francisco, CA (PRWEB) July 17, 2013

Franchising as a business model is an increasingly important part of the American business landscape. This model already comprises about 5% of businesses in America and generates about 8% of all private sector jobs. Intriguing new franchise businesses are popping up everywhere. LED Source®, a new franchisor of LED Lighting, offers an opportunity for franchisees to profit from the “green” trend. InXpress USA, a fast, growing franchise organization, specializes in international shipping for small to medium-sized businesses.
These and other innovative franchises offer grass roots entrepreneurs a chance to get into business for themselves. The franchising model combines a potent mix of capital, brand and initiative. It also has a lot to teach non-franchised companies.

How Franchising Works

A firm with an established product or service (the franchisor) enters into a contractual relationship with other businesses (the franchisees). Franchisees operate under the franchisor's trade name and guidance--in exchange for a fee.
The contract defines franchisor and franchisee responsibilities. The franchisor provides a business model and marketing strategy that specifies segments, products/services and brand positioning. The franchisor also provides advertising, marketing, training and support. The franchisee is responsible for the local facility and management of daily operations.
In recent years the franchise model has expanded from being product-oriented (for example, fast food) to include service-dependent businesses like auto maintenance and hotels. The newer model requires the franchisor to rationalize complex businesses into repeatable processes that franchisees can execute.


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