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The franchise can be a method of doing business by which a business owner (the franchisor) allows somebody (franchisee) to use their entire systems and operations to try to do business.

For new entrepreneurs, what seems interesting. No need to go back with ideas for doing business. No need to do market analysis, scout vendors, or to evaluate their situation. Everything is provided by the franchisor.

As part of the responsibility of the franchisor assists the franchisee in all aspects of the company. It should provide the necessary training to all employees so they are ready to run the company as well.

The franchisee must be on the stick side to the systems of the franchisor. He also must submit to the franchisor, the fee is imposed as provided in the franchise agreement.

Often, the franchisor provides a free hand to try to do what he wants for the penalty cases to increase, the price-off, implementation of new store styles, product reformulation, and so on. The franchisee does not have a voice to counter plans franchisor.

Risks to obtain a franchise is that:

1.When the franchisor does not provide the necessary support to the business of franchising, such as the promotion of aid management training, and employees, management, etc.

2.When the business did not go well, there is no moratorium on payments, the franchisor collects like royalty, management fee, etc.

When the franchise is back on its own to keep the business alive, it’s as if it was not a franchise business. The franchisor simply collect a percentage of sales of the franchisee regardless of whether it is cash or not.

This can cause tension in the relationship between the franchisor and the franchisee, therefore, it might even end up in the cancellation of the franchise agreement. The responsibilities of different parties must be mentioned without shame before signing the franchise agreement.

Joining a franchise is like a marriage between the franchisor and the franchisee, therefore, that there should be a harmonious relationship between the two for the duration of the franchise agreement.