How to invest in a franchise

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The franchise is a relationship between two entrepreneurs, where the one that becomes a franchisee assumes a system, a know-how and a brand, for which he pays a few amounts in concept of entry fee. However, there are risks, avoidable. You just have to identify them to minimize them.

What is a franchise?

When entering a franchise system, the franchisee must have clear, from the beginning, the most important concepts; aspects that once solved will shed light on the development of your business.

Franchisee and franchisor seal an agreement where the former assumes a system, know-how and a proven brand. And it does so in exchange for paying some amounts in concept of entry fee.

It is up to the franchisee to find answers: to know if the brand is duly registered, the volume of franchised establishments with which the selected banner counts and which make up its network or which are the exploitation accounts of the firm is a guarantee when developing activity. It is about identifying risks, evaluating them and trying to minimize them to the maximum.

Source: http://www.mifranquicia.mx