General principles of successful businesses today are known to every entrepreneur. In the absence of large amounts of money needed to take out a loan or lease. To reduce the tax burden is a simplified system of taxation. To reduce the risk – work broker, agent or simply buy a franchise. Properly combining these methods, we can achieve effective results, and as a result – a stable and successful business. But do not interfere with the theory and practice, therefore, consider some practical aspects in more detail.

Creating a business like a driving school car. Manages the car driver (the franchisee), he decides where to go and where to turn, but when an emergency occurs comes to the aid of the driving instructor (the franchisor). It is in these situations is to evaluate the potential franchisor – the experience, reputation, and opportunities to assist in the event of force majeure.

Sometimes, in addition to providing exclusive rights to use, while the franchisor is an investor and co-founder of the company. In such cases, investing your money and risking their brand, franchisor is interested not only in the return on investment, but also in gaining some market share. It is a share in the company is the key to its successful development to the franchisor , because the hand is a powerful lever.

But there is another side. The presence of a co-investor or co-founder leaves to franchise certain limits in decision making and the appearance of a more interesting and profitable project, there is a risk that the sub-franchisor’s resources be directed right place, at the same place cash outflow of resources from your company.

In addition, there is another risk in many contracts of franchising there are no conditions that allow the franchisee to make their activities in a particular area, which means that in front of you at any time can be just as, if not a franchise under the same brand. To avoid such a situation, it is recommended to prescribe the conditions in the agreement the exclusive right to conduct its activities in a particular area.

As regards taxation, the easiest way of doing business means a franchise – a flat tax. However, this option does not apply to all activities.

A wise ruler and strategist Cesar once said: – “The enemy is waiting where he least expected.” Maybe a little thought, you change your mind and still decide to buy a franchise. Ultimately, the franchise – a way of competition, which requires a significant investment in mutually beneficial cooperation that brings success to both parties.