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We're Not a Franchise!

What does that mean? Well first let cover what a franchise is. Franchising occurs when the owner of a business grants a license to one or more parties for the purpose of conducting business using the same trademarks, trade name, and other identifying aspects of the business. The party granting the license is referred to as the "franchisor," while those purchasing licenses are referred to as the "franchisee." The franchisor is frequently involved in specifying the services offered by the franchisees. They may also provide a system of operation, marketing tools, raw materials, training, and other forms of support.

 

The “franchisee” pays the “franchisor” a contracted fee for the use of its name, and other aspects of the business. Who really pays for those fees and dues? The customer does. In order to remain competitive in cost comparisons against other competitors a “franchisee” must cut costs elsewhere to make up for it. They’re not cutting costs on the business side as they’re not the owners. The cost cutting comes from workmanship. “Franchisees” don’t typically do the work themselves either. They hire a subcontractor to do the work. Which also adds more overhead and fees that need to be made up for.

 

If you want your money’s worth, it’s best to hire an actual company for the services you’re in need of. By hiring a privately owned company you’re going to get the best value for your dollar and the end result is going to reflect the quality you’re expecting.  

 

So remember, there’s business owners, then there’s people that want to own a business but don’t know how so they buy into a franchise.

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