Review article
Starting a business through a franchise
Dubravka Mahaček
Maja Martinko Lihtar
Abstract
A business can be launched by establishing a new entity, purchasing an existing entity or through a franc
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hise. 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 may
be 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
Keywords
franchise; costs; financing; advantages; disadvantages; experience
Hrčak ID:
116459
URI
Publication date:
31.12.2013.
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