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Automotive Business Franchise

Before compounding automotive business practice, we need to know what franchising actually is. Franchising could be defines as a concept under which the franchiser gives the franchisee the permission to trade or do business in the model of the franchiser. Here the ideas of the franchiser are used and hence the brand name remains the same. The franchiser also gives the franchisee the technological know-how of his business, franchising helps the business to reduce its cost as the cost of building a completely new business in a different country or state where the state of living is completely different and as well as the cultural. Therefore, it would a complete risk to do so.

A franchiser grants franchise only to those franchisees who actually qualify the basic requirements of acquiring the franchisee like area, space, technicians, responsible, promise to maintain the rand image and who are promising.

This franchising system of business practice came into existence this in the 1950's in a modern way but it was actually intuited in the 1930's itself in the united kingdom and united states.

The main points of consideration before granting the franchise would be the following:

1. Capabilities of expanding

2. Legal issues of the particular country or place where the franchise is granted

3. The technical issues related to all the various types of resources that might be required for the model to run perfectly.

From the point of the franchisees, these would be the major points of consideration for consideration and as well as advantages too:

1. Provides very high job opportunities for the franchisees

2. When starting a new business it would require so much in order for the business to run success when franchised the brand image already being there it would have dream start.

3. They also would have the advantage of the ability to grow fast in terms of the size and structure of the firm.

4. Efficient and systematic training would be provided to the franchisees and hence they would have clear knowledge about the depth of the business.

Automotive business could be described as a business who completely deals with the production of automotives i.e. vehicles in general which could be for domestic as well as industrial purposes. The owners of a particular mode l hold the patents for it hence copying it would be a high-level crime.

Automotive business service centre are always and mostly franchised.

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