Online Franchising

Good, old Franchising

After I have taken a look into the clash of Ebay’s PayPal and Google I would like to suggest a legal way of acquiring an already existing online business idea: Franchising! According to Wikipedia, Franchising is:

“…the practice of using another firm’s successful business model. For the franchisor, the franchise is an alternative to building ‘chain stores’ to distribute goods and avoid investment and liability over a chain.”

Everyone knows the first and most successful franchise model McDonalds (don’t like it), yet franchising has already made its way to the internet. Successful models of Business ideas based on the internet can be bought without making major investments and without taking much risk. Compared to setting up a business on your own online franchising seems to be the easy way of starting a venture.

Let’s take the example of interx.de, an online agency for CMS (content management system) Software, Web design and Software development launched by hellmedia. Their aim is to realize internet, intranet and extranet projects and if somebody becomes a partner, this is exactly what the partner is supposed to do.

Start Up

But what does it mean to become a member? In this case it simply means to acquire a license, which enables you to act as an internet project supporter in the name of hellmedia. This could be setting up an online store or creating an online profile. Now you might think: “I couldn’t do that!” and indeed you would need skills for this kind of partnership, but every franchising opportunity demands at least “some” skills. Beside that the franchisor supports the partners with trainings and support, as they have to meet a certain standard and to offer quality.

Supplies

What you wouldn’t need to worry about are all the supplies. Coming back to interx the franchisor delivers the franchisees with the software necessary to realize the projects. So having bought a license which includes a company name, know-how and supply means you are close to running your own business, though something is missing. How to attract attention and gain customers?

Marketing

Well, marketing is done by the headquarter, the franchisor. Their job is it to let the company’s name circulate around the web and make it famous for quality, quantity, price or anything else. The more people know the company, the more customers the company will have and the more partners the franchisor will need to satisfy the demand. Last but not least, the more partners the franchisor has, the more it will be known in the business world. It is kind of a win-win situation.

The Loot

The reason for Franchising is finally the profit. The franchisor earns money by selling the license and a commission, gained by the profit of the partners. The Franchisees basically earn what they sell, but have to forward a percentage of their profit to the franchisor, as mentioned before.

Assets

Due to the fact that internet franchise businesses exists only online the licenses can be acquired in most of the cases quite cheap, in some cases even for free which limits the possible loss in case of failing. No stores need to be set up and rarely expensive equipment bought. So it is possible to run businesses also from home and moreover to do it additional to your actual occupation. But to find out which franchise opportunity is the right one for you, you can check out pages like Franchise Portal, Franchise-Hit or Franchise Direkt.

Referring to my last posts online franchising might be the right solution if you are not creative enough to find your own business idea, are not willing to take much risk, do not have enough capital to invest or simply do not want steal an already existing business. More ideas in progress!

Advertisements

About domwoj

Mid-20 blogger from the heart of Germany, currently studying “International Business Management” in the capital, Berlin. Interested in business sciences and always tries to think globally. Pursuing goals like “finding the answer to the question: What is the meaning of life?” View all posts by domwoj

3 responses to “Online Franchising

  • angiethiem

    Hey master! Nice introduction first of all – i like the connection to your previous post and furthermore your easygoing writing style with an understandable language. But what i didnt understand – how do those online franchisers earn their money actually? because like mcdonald, they are located in different areas so that its easy for everybody to reach them. But how about websites? I mean why duplicate them? Sorry for my usual dummheit, but i would really like to understand :)

  • yannick

    Hey Domwoj,
    fancy style you got there. Red headings AND special inc(looks so professional) I am impressed!
    Now that I learned about every detail in the franchising business I really got hungry. I would like to eat a big Kebap! I wonder why they are not franchising yet!

  • Swallowing The WorldWideWeb « BusinessNerds

    […] having written about curious-, copying-, art- and franchising online business ideas as well as about how to find an online business idea, I finally come to an […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: