Biz Opp or Franchise?

by Franco on March 10, 2008

One of the ways to grow a successful business is to sell versions of your business to others for a fee, either ongoing or one-time. Your business model has a value all by itself, above and beyond the products you sell. The question is, in what form will you sell it?

Among the various ways you can sell your business (and keep it at the same time!) is the license (or biz opp) and the franchise. Each has it’s own advantages and disadvantages.

Franchise

A franchise is essentially selling a license to use a particular brand name.

Three elements are needed to meet the legal definition of a :

  • A trademark or brand identifier that is shared across all franchisees. That’s in essence why all the McDonalds are called McDonalds. Although McDs has a snoot-full of trademarked items in their stores, only one brand name has to be shared to meet the definition. The trademark is considered an item of value in and of itself.
  • Supplying aid and support or retention of significant operational control. McDonalds runs a training academy for franchisees. They require that franchisees purchase from the corporate supply chain and they maintain price and marketing controls over their franchise holders. The meaning of ‘significant’ in a legal sense is open to court interpretation, but essentially means that if the seller retains some say in what your business practices are, then you are a franchise.
  • Payment to the franchise holder of a fee of $500 (combined) or more over the first half-year of operation. This refers to any of the following: start-up fees; royalties; marketing fees; training costs or equipment. Just about anything except product sold at wholesale prices is included in the definition of ‘fees’.

Biz Opp

The essential difference here is that when you buy a business opportunity, you buy an idea (and maybe training) without a brand name. This is also referred to as a ‘licensing’ agreement. The other elements of a franchise arrangement apply, with control and training retained to some extent.

Note that in some states, are regulated and have their own disclosure rules. Merely dropping the shared brand name requirement might not free someone from the disclosure and regulatory requirements that franchises have. Online, it may be beneficial to operate out of a state with liberal rules.

The Downside of Biz Opp

Although much control is retained when selling a Biz Opp, they usually sell for substantially less than a direct franchise. This is simply because brand names have value. Customers come to appreciate that McDonalds in Chicago is as reliable (or as crappy) as their hometown McDonalds is. There is also a substantial savings in marketing when a brand name is shared. Each franchisee essentially shares the marketing of every other. Biz Op owners have to create and market their own brand.

The Upside of Biz Op

By essentially owning the brand name that you create, you can market and skew it to fit your local market and your own ideas. Although the licensor will retain some say in how you do business, you are not limited solely to house products. Also, biz ops are generally cheaper and spread faster than traditional franchises. This means that they require less upfront investment and risk.

Join the Global Mentors Team and get the most out of your Business opportunity!

{ 37 comments… read them below or add one }

Cami Halısı August 12, 2022 at 9:34 pm

Temizlenmesi basittir.

tozluyaka yeni bölüm fragmanı August 11, 2022 at 8:02 pm

thank you so much. I will always follow this site.

hi_snnnobby@yahoo.com August 10, 2022 at 7:44 am

I am just writing to let you be aware of what a notable discovery my child went through reading your blog. She realized plenty of issues, including what it is like to have an awesome giving style to have other people completely master chosen very confusing things. You actually did more than our own expected results. Thanks for delivering such precious, dependable, educational and fun thoughts on that topic to Ethel.

web tasarım August 7, 2022 at 6:46 pm

web tasarım

cr_nickolya1@yahoo.com August 7, 2022 at 6:09 am

Needed to send you the little remark in order to thank you very much yet again about the awesome principles you’ve shown in this case. It’s really strangely generous of you to allow freely what a lot of people would’ve offered for sale as an e-book to make some money for their own end, specifically given that you might well have done it if you ever considered necessary. The strategies in addition served like the great way to comprehend some people have a similar dream just like my very own to know a good deal more when considering this issue. I know there are several more fun situations in the future for individuals who view your blog.

br_pnutskids@yahoo.com August 5, 2022 at 10:04 am

I would like to express my thanks to the writer for bailing me out of this incident. As a result of searching through the online world and coming across methods which were not beneficial, I assumed my entire life was gone. Being alive devoid of the solutions to the problems you have resolved by means of the guideline is a critical case, as well as the kind that would have adversely affected my career if I had not discovered your blog post. Your own personal mastery and kindness in maneuvering a lot of stuff was excellent. I’m not sure what I would’ve done if I had not come upon such a step like this. I am able to now relish my future. Thanks so much for the professional and results-oriented help. I won’t hesitate to propose your web sites to anyone who would need counselling on this subject matter.

maraş e-ticaret July 22, 2022 at 9:33 pm

nice blog

tozlu yaka July 19, 2022 at 9:16 pm

My rating for this site is 10

savoybet giriş July 15, 2022 at 7:28 pm

Her açıdan geniş bir yelpaze ile savoybetting casino oyunları üzerinden bu konuda şu an en güçlü bahis şirketleri içerisinde yer alıyor.

valorant July 13, 2022 at 6:02 pm

I’m following your website, excellent thank you.

Clint July 6, 2022 at 4:13 am

hello!,I like your writing so so much! proportion we keep up a correspondence more
about your post on AOL? I need a specialist in this house to solve my problem.
May be that is you! Having a look forward to look
you.

Audry June 2, 2022 at 1:46 am

Howdy! This post could not be written any better! Reading through this post reminds me of my
previous roommate! He always kept talking about this.
I am going to send this article to him. Fairly certain he’s going to have a great read.
Thank you for sharing!

Cindi June 1, 2022 at 9:48 pm

When I initially commented I appear to have clicked on the -Notify me when new
comments are added- checkbox and from now on each time a comment is
added I receive 4 emails with the exact same comment. Perhaps there is a way you can remove me from that service?
Thanks!

Vern June 1, 2022 at 4:04 pm

Good respond in return of this matter with genuine arguments and telling the
whole thing on the topic of that.

a fantastic read June 1, 2022 at 7:57 am

My developer is trying to convince me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using Movable-type on a number of websites for about a year and am worried about switching to another platform. I have heard fantastic things about blogengine.net. Is there a way I can transfer all my wordpress content into it? Any help would be greatly appreciated!|

about his May 31, 2022 at 10:19 pm

Hi mates, its great paragraph concerning educationand fully explained, keep it up all the time.|

browse around here May 31, 2022 at 9:44 am

I was suggested this web site by my cousin. I’m not sure whether this post is written by him as nobody else know such detailed about my difficulty. You’re amazing! Thanks!|

Madison May 31, 2022 at 6:55 am

Howdy, There’s no doubt that your web site could be having web browser compatibility issues.
When I look at your site in Safari, it looks fine however, if
opening in IE, it has some overlapping issues. I merely wanted to give you a quick
heads up! Besides that, fantastic site!

hi May 16, 2022 at 12:05 pm

Outstanding story there. What happened after? Good luck!|

Dorothy May 16, 2022 at 5:16 am

That’s a great point

samsung batarya May 11, 2022 at 9:04 pm

Harika blog, severek takip ediyorum, yazılarınıza hayranım. Bizim web sitemize ziyarete de beklerim.

child porn May 2, 2022 at 8:48 pm

Thank you for great information. child porn , Google porn , sex izle , Baby porn

Leaks Onlyfans April 14, 2022 at 9:22 am

Best Video Onlyfans Leaks On The Internet

kahoot winner April 3, 2022 at 3:52 am

kahoot winner site check out

işitme cihazı March 30, 2022 at 2:03 pm

I liked your website very much, it was nice and the article you published helped me a lot, thank you

tiroid kanseri March 16, 2022 at 4:23 pm

Kanser kelimesi, kontrolsüz hücre çoğalması anlamındadır. Yani bir canlının vücudundaki herhangi bir organdaki herhangi bir hücre günün birinde kontrolsüz bir şekilde çoğalmaya başlar ve sayısını hızla arttırırsa buna kanserleşme denir. İşte bu kanserleşme olayı tiroid dokusu içinde gerçekleşirse buna tiroid kanseri denir. Tiroid kanserleri boyunda bir kitle veya tiroid bezi içinde bir nodül olarak görülür.

pożyczka March 8, 2022 at 2:27 am

Strona www dedykowany zdaje się być sferze poprawnych lokaty. Tak jak pieniężnych w postaci lokat, oraz dalszych. Bieżące recenzje pieniężne, jakie to mogą ulżyć Państwu na dobraniu opłacalnego kredytu hipotecznego pozostają opracowywane za sprawą fachmanów zajmującymi się od dawna finansami. Najciekawsze adnotacje ze świata bankowości. Omawianie metamorfoz, które są w stanie wpłynąć korzystnie w domowe oraz firmowe fundusze. Jako serwisie www znajdują się charakterystyki wszelkich najpopularniejszych tworów pieniężnych, zarówno sugerowanych za sprawą parabanki. Serwis to jakiś zręcznością paru podjął się także treści polis. Iz stroną nauczą się Państwo wkładać prywatne gospodarności. Zaś o ile odrzucić mogą mieć Państwo oszczędności, to ogromnie przychylne opinii nauczą zarządzania domowym budżetem. O tym, hdy jest to prawdopodobne nie należy się nazbyt długo edukować. Trzeba odwiedzić, żeby użytkować na funkcjonowanie spośród bardzo użytecznych sugestii. To argument na to, że szczędzić jest sens dodatkowo przy pospolitych sprawach, jak i w stosunku do zbędnych projektach https//pozyczkaland.pl/ pożyczka.

işitme cihazı pili 312 March 6, 2022 at 2:24 am

I liked your website very much, it was nice and the article you published helped me a lot, thank you

Ulaş Utku Bozdoğan March 4, 2022 at 5:28 pm

Ulaş Utku Bozdoğan

instagram takipçi satın al March 1, 2022 at 3:09 pm

Thanks beautiful article

link comment February 28, 2022 at 5:55 am

link listemiz yenilendi her zaman bekleriz sizleri.

kepenk servisi February 2, 2022 at 10:26 am

kepenk servisi olarak kaliteli hızlı anlık hizmet anlayışı mutluyuz

deneme bonusu veren siteler January 21, 2022 at 9:25 am

harika deneme bonusları veriyor

twitter retweet hilesi December 30, 2021 at 11:41 am

do you have this on instagram?

Bedava Deneme Bonusu November 30, 2021 at 10:44 am

bedava bonus kazandim sayenizde harika oldu bu tesekkur ederiz yine sizi takip edecem

deneme bonusu veren siteler November 19, 2021 at 9:37 pm

thanks you very good

venlafaxine price January 9, 2021 at 6:29 am

Thanks for your own work on this website. My mum takes pleasure in setting aside time for research and it is simple to grasp why. We notice all relating to the powerful way you provide very important tips and hints via your website and therefore strongly encourage response from visitors on this theme while our own simple princess is without a doubt understanding so much. Take pleasure in the rest of the year. Your performing a useful job.

Leave a Comment

{ 5 trackbacks }

Previous post:

Next post: