WHAT IS A FRANCHISE

What Is A Franchise?

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A franchise is an agreement whereby, in exchange for an initial franchise fee and other commitments from a party, a Franchisor grants to its Franchisees, a license to use the Franchisor’s trademark, to work within a proven system and to use proven guidelines that are designed to create successful results for the Franchisees. When an individual signs a franchise agreement, the Franchisor commits itself to provide that individual (the Franchisee) with training and ongoing support and the franchisee commits himself or herself a being a part of the franchisor’s family. 

Tink-A-Tako, as the Franchisor, proudly grants to qualified parties licenses for the use of our trademark. We provide training, operational support, marketing assistance and branding so our franchisees can be financially successful.

To be granted a Tink-A-Tako franchise, you must meet the qualifications and successfully complete our training process. You will work with a dedicated member of our franchise support team. Our support team specialist will assist you with your Tink-A-Tako franchise business and will answer any questions that you might have. 

During your discovery process, we will provide you with our Franchise Disclosure Document and our Franchise Agreement. Those documents will explain the obligations that we have to you, as our Franchisee, as well as the obligations that you, as the Franchisee, have to us.

Benefits of being a Franchisee:

Franchisor’s Experience
With every franchise that is awarded, the individual that purchases the franchise also has the benefit of the years of experience and the proven operating system of the franchisor. One franchisee expressed it this way, “The knowledge that I’ve learned from the franchisor was worth ten times what I paid for the franchise.” In any new business, much time and money are spent in trial and error, but a proven franchise is designed to eliminate many of those start-up problems, thereby allowing an individual to open a franchise with little or no previous experience in a given industry.

Training
Every franchisor provides training for its franchisees. This is usually done at the franchisor’s corporate office and often also includes training at the franchisee’s on-site location. Training is designed to prepare new owners for all aspects of the business.

Advertising Assistance and Buying Power
As the number of franchisees increases, so does public awareness of the franchise, which can be a tremendous advertising benefit. Franchisees located near one another can also advertise together, reducing costs. Most small business owners cannot afford to inventory products in bulk or do extensive advertising. The franchisee buys this benefit when he or she buys the right to use the franchisor’s purchasing power and advertising – most franchisors provide advertising help and direction.

Ongoing Advice, Research and Development
Franchisees need help throughout the term of their business endeavors and the franchisor’s staff can give this needed help in all aspects of the business. The franchisor can also provide ongoing research and development so that new products and services will be made available to its franchisees.

Business Synergy
“Synergy” refers to the concept that the sum of the whole is greater than the separate parts. This principle is very significant in the franchising industry. Franchisees become part of a “family” or “partnership” where all members work together for the good of the whole. Often, some of the most effective ideas come from franchisees who in turn share their ideas with the corporate office and with other franchisees.
Limitations of being a Franchisee:
Working Within the System
Individuals who have difficulty following directions from others or who dislike working within a system will find franchising extremely frustrating. If consistency among franchises is to be maintained, it is critical that all of the franchisees conform to the franchisor’s operations manual. There are areas, such as marketing, where a franchisee can be creative.

The Risk
Risk is inherent with starting any small business. Because the franchisee owns the business, he or she, to a great extent, determines the actual success of the venture. The franchisor may have a great program and a respected name, but in the final analysis much of the risk depends on the franchisee’s efforts.

Working With the Franchisor
A franchise can be closely compared to entering into a marriage. Both are legally binding relationships that last for a long time. The franchisee’s relationship with the franchisor will be extremely important. Franchisees should get to know the franchisor by visiting corporate headquarters, talking to other franchisees, and learning as much as possible about the franchise.

False Expectations
Some individuals that purchase a franchise expect instant success, perhaps because they see how well other franchisees have done. Those individuals may not adequately consider that accomplishment does not come without great effort. Franchising, like any other business, requires tremendous time, initiative and industry. Prospective franchisees should ask the franchisor to be realistic when explaining what is required of the prospect to operate the business.

Managing the Business
Some individuals are better prepared to effectively manage a business than other individuals. Some individuals may have some business experience and have learned to get along well with people. Other individuals may feel that managing a franchise is a burden. Prospective franchisees must honestly assess their own ability to run a business – rather than being employed. If these individuals find they have little or no experience, they should seek special help from the franchisor in business management. Also, most local communities have access to business mentoring programs, such as local community colleges or the SBA’s SCORE business mentor program.
Disclaimer: This web site and the franchise sales information on this site do not constitute an offer to sell a franchise. The offer of a franchise can only be made through the delivery of an FDD. Certain states require that we register the FDD in those states. The communications on this web site are not directed by us to the residents of any of those states. Moreover, we will not offer or sell franchises in those states until we have registered the franchise (or obtained an applicable exemption from registration) and delivered the FDD to the prospective franchisee in compliance with applicable law.
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