Starting a business through a franchise Cover Image

Ulaganje u poslovanje putem franšize
Starting a business through a franchise

Author(s): Dubravka Mahaček, Maja Martinko Lihtar
Subject(s): Business Economy / Management
Published by: Sveučilište Josipa Jurja Strossmayera u Osijeku, Ekonomski fakultet u Osijeku
Keywords: franchise; costs; financing; advantages; disadvantages; experience;

Summary/Abstract: A business can be launched by establishing a new entity, purchasing an existing entity or through a franchise.There are certain prerequisites for starting a business, the most important ones being a quality idea and start-up capital. Potential start-up difficulties are inadequate financing, existing competition as well as the process of building your own market position. By purchasing an existing business some risks maybe avoided and the opportunity for gaining profit may arise. Profitable operation is possible only if this business has up-to-date products and no outstanding liabilities. This paper discusses franchising business opportunities and the requisite investments and costs, which will bring success if they are accompanied by franchisee’s efforts. The paper aims to present the main characteristics of a franchise business, the necessary investment and the costs which arise in the process, as well as advantages, disadvantages and experiences with this kind of business.

  • Issue Year: 26/2013
  • Issue No: 2
  • Page Range: 598-609
  • Page Count: 13
  • Language: Croatian