Frachising

The concept of franchising can be traced back to the thirteenth century. A government or sovereign power would grant people the right to hold markets and fairs to sell their wares, or hunt on land owed by a lord. Franchising was very simple during this time because there were no written contracts used to regulate the sale of goods. However, some people were required to pay for the rights to sell their product(s); the term used for that was “royalties” which is still used in business today. During the 1840’s in Germany, major ale brewers granted taverns the right to sell their beer. This was the beginning of the modern day concept we know as franchising. In the United States, franchising, as it is now known, began in 1851 with the Singer Sewing Machine Company following the Civil War. They showed signs of great success as far back as the 1850’s. The industrial revolution in the United Stares saw huge growth in our transportation and communication systems at the urn of the 19th century. These improvements gave manufacturers and producers a quick way to distribute their goods into the marketplace. This practice became an important element to the overall success of manufacturing and pro

· Accounting and bookkeeping fees: Some franchisers will provide, as part of the initial fee, several months worth of accounting and bookkeeping forms to you streamline your own accounting procedures. The benefit of providing this kind of help simply means the franchiser can collect their royalties, service fees, or advertising contributions without delay. It is in the best interest of the franchiser to provide this assistance as a means to your success, and money in their pocket. Other franchisers feel it best to recoup some of their costs by charging the franchisee for all bookkeeping assistance. They can also lease computerized cash registers that link to their central computer and charge for dedicated lines. This is classified as accounting fee.

The cost of obtaining a license and starting up your operation varies according to the type of business you purchase. You can pay up to 12 different fees for the license and to obtain support from the franchiser. These fees include:

· Build-to-suit fee: This fee can be quite expensive. It is charged only if the franchisee is unable to find a building that conforms to predetermine architectural designs. You can save yourself this extra fee by working closely with a real estate agent familiar with what buildings are offered in the area you have chosen to open your business in.

· Ongoing management assistance: Another fee charged for extra assistance from the franchiser not negotiated in your original contract.

Beyond the fees you will pay to the franchise owner, there are many additional up-front expenses you need to plan for. The most expensive of th

Some topics in this essay:
War II, History Franchising, United Stares, Civil War, hidden costs, agreement hidden, franchise business, concept franchising, costs fees, fees pay, accounting bookkeeping, franchise fee, business ·, site selection,