The term "franchising" covers a variety of arrangements in which the owner of a product, process, service, system or even a name allows someone else to use it in exchange for some sort of payment. It can take the form of:

Distributorship / Dealership

These are essentially only a license to distribute a product. A licensor grants a license to a licensee.

Agencies

Here the agent 'one-sells' the products on behalf of the supplier for a commission.

Network / Multi-level marketing

Instead of the manufacturer setting up a sales organization, groups of self-employed distributors build sales organizations of their own. Financial rewards are paid based on total sales. However, the franchising that will be dealt with here is the most popular use of the term and is known as: -

Business Format Franchising

This involves granting the rights for a given period of time by a company (franchiser) to a third party (franchisee), to operate their proven business system using a common brand and format for promoting, managing and administering the business.

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 1. Access to capital

This is somewhat overcome as commercial banks and development corporations recognize the lower risk profile of franchising and consequently prefer financing a franchisee. Financiers know they have a "safety net" in the franchiser who has tested and fine-tuned the franchised system.

2. Experience of the franchiser

Our franchise package comes along with years of experience and proven methods. This eliminates many of the start-up problems and enables someone with little or no experience in a particular industry to become part thereof.

3. Training

The franchiser provides both initial and ongoing training to a new franchisee. This helps to prepare the franchisee in all facets of the business. This method of skills transfer takes place at all levels i.e. Management training, technique training, preview, promotion, presentation, as well as employees' training at all levels. This is a particular benefit for people who do not have the experience, knowledge or the skills of Mental Arithmetic, which they wish to enter. Upon approval of an application, signing of the franchise agreement and the successful purchase of your franchise, the franchisee and/or employees will undergo an intensive training course. During training, all aspects of the company's unique and specially developed computer programs, all legal aspects of the business and the marketing of the business is discussed in detail.

4. Standards

The franchiser provides the franchisee with ongoing assistance throughout their term of business relationship. In addition, the franchiser is also in a position to provide continuous research and development, contributing to new products and services.

5. Business synergy

Purchasing a franchise means to become part of a " family " where all members work together for the good of the whole. All franchisees contribute and share ideas for the benefit of the franchise. Maintaining and upholding clearly defined operating procedures and quality standards. Contribution to growth through feedback, promotion, research and development.

6. Reasons For Success

- A proven concept
- A mentorship that lasts the life of the franchise agreement
- Lower risk and less chance of failure
- Not being a "master/servant" but a business relationship