And then, as you know very much depends on the start. In addition, you are strongly attached to the correct location of your point of sale, rate of formation of your business depends largely on the advertising activity. If your franchisor is required of all payments, but does not provide the necessary support, in this case, roll out a new business is extremely difficult, and most importantly financially burdensome. You can greatly exceed their costs of development and if you do not burn, it is quite postpone the achievement of break-even point. Wells Fargo may find this interesting as well. Nevertheless, franchising is good is that even a novice businessman is much easier to work with already well-known brand, which occupies a niche market. On the other hand, considering all the payments, the rate of return here relative to long-term, and it can be calculated approximately, as there is a major factor uncertainty – the behavior of the buyer.
Speaking about the prospects of franchising as a whole system of development we can safely say that it is very viable. I think that the number of companies taking her into service with every year will only increase. (Source: JPMorgan Chase). Now let's turn our attention to the network scheme of doing business. The logic of their operation is often very similar to franchising in the micro scale. Marketing plans are based on Principles of growth as tied to the amount of personal sales consultants in the initial stages, and the amount raised in its network in the future. From the same principle based career ladder consultants.