Franchising business is one of the popular business trends today. So what should you pay attention to when starting a coffee franchise business? Let’s find out with PULL’S COFFEE in the article below!
1/ Market research for franchise business
The first thing to do when starting a business is to research the market. In addition to understanding yourself and your available capital, you need to clarify the following factors:
- Overview of the market, competitors.
- Related products and services.
- Location, premises, business scale.
- Franchise business brands on the market.
- Time to recover capital and make a profit, operating process.
After careful consideration, you can choose the appropriate franchise business brand.
2/ Legality of the contract, franchise business brand
In terms of law, you need to pay attention to the following 2 things:
- The brand needs to be registered for legal protection. Most big brands are registered for legal protection, but there are also a few that are not.
- The terms, rights and obligations of both parties in the contract. Check carefully to avoid unnecessary losses.
3/ Costs incurred when doing franchising
Costs required for franchising such as initial investment costs, franchise costs. Or percentages of profits paid to the franchisor according to the contract. In addition, additional costs may arise such as: premises, employees, raw materials, electricity and water, etc.
You need to calculate these costs to optimally control your cash flow. And avoid unplanned shortages.
4/ Consistency and lack of creative freedom
When doing franchise business, it means accepting the direction, framework and business regulations of the franchising company. You are not allowed to change or violate the terms stated in the contract. If you intentionally let that happen, depending on the severity, you may be reminded, punished according to the contract or have your business rights revoked.
In conclusion
Franchising business has certain constraints when you intend to try the above model. The above type becomes popular because of its typical advantages. But when doing it, you need to consider certain notes. Maybe the above article is useful for you.
If you are in need of advice on the PULL’S COFFEE franchise business model.
Do not hesitate to contact us via Hotline: 0902 750 780.
