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FRANCHISING is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage piece of gross sales or gross profits as well as the annual fees. Various tangibles and intangibles such as National or International Advertising, Training, Technologies and other support services are commonly made available by the entity licensing the franchise.

 

Franchising is a way of expanding a successful business with a proven business concept. In a business format franchising by the owner(s) of a successful concept (the franchisor) grants a license to other person (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and in line with his/her concept usually in exchange of an up-front fee and a share on franchisee’s future profit.

 

Franchising gives an opportunity to franchisees with an entrepreneur spirit to start their own business while enjoying support and know-how of a strong partner with a successful time-tested concept. In a franchise partnership the franchisor brings proven products and a successful business concept while franchisees add their knowledge of the local market.

 

Given that franchising is based on the principle of “cloning” already proven success, franchise failure rates are low. Franchisee can enter the market faster and with less risk and get proven know-how and recognized brand immediately when opened. In other words, franchise gives you a great opportunity to avoid elementary mistakes and losses often leading to a failure of younger companies. Franchising is a business tool, which enables franchisees to start their own business without their own products and provides franchisors with an opportunity to grow and develop their business faster with financial funds that franchisees bring to the business.

RE/MAX ranks among the most successful real estate franchising networks. Through franchising we operate in 78 countries and our global network includes more than 6,500 offices and 100,000 sales associates. In 1996, RE/MAX International was recipient of Income Opportunities magazine’s first Franchise Relations Award, based on superior support, training and communications services provided to franchisees.