Differentiation of Business Packages with Franchises

Have you ever seen an ad or advertising poster that says "open a franchise opportunity" or "sell a business package".

Well, did you know that the two things written in the ad are two different things? Or, do you think that the two things are the same?

Well, actually the two are different things, you know.

Therefore, if you intend to start a franchise or franchise business, then you must know the difference between a business package and a franchise or franchise.

Curious? Come on, see more below!

Definition of Franchise or Franchise

Nowadays, surely you are familiar with the term franchise or franchise.

Well, even though you are familiar with the term, do you also know the meaning of the term?

In essence, a franchise or franchise is an agreement by a party that contains the special rights of a person or business entity to a way of working or a business system with business characteristics.

The way it works is by marketing goods or services that have been successfully marketed and can then be developed and utilized.

This franchise or franchise business will bring together the franchisee or franchisee buyer with the franchise seller or franchisor.

After that, they will make an agreement in which there is a way of working the business or business work system along with the IPR (Intellectual Property Rights) that have been granted.

Some of the IPR that will be granted include the name, product trademark, and also how operations work for the business.

Definition of Business Package

Nowadays, you must also be familiar with the term business package. Because its existence has indeed mushroomed.

No matter in the city or in the village, now you can find various kinds of business packages. There are snack business packages, beverage business packages, and so on.

Examples of business packages that are common and can be determined by almost all levels of society are business packages of chocolate drinks, cincau, cheese tea, thai tea, and also boba.

As for the food, there are takoyaki business packages, grilled sausage business packages, and so on.

Well, surely you have often encountered business packages like this? So, what is the business package itself?

For those of you who have often encountered examples of business packages, but don't know what they mean, the point is that a business package is a package offered to start a business.

Usually, business packages are sold at a fairly low price. Because the business package is specifically designed for those who want to open a business with a small capital.

In general, if you buy a business package, you will get tools and materials to walk.

For example, if you buy a chocolate drink business package, then you will get a cart for selling, plastic cups, straws, chocolate drink ingredients, and others.

In essence, when you buy a business package, you can use IPR such as the name, trademark, and business operational system of the person who sells the business package.

If you do so you are not burdened with the obligation to pay such as Franchise Fee, Royalty Fee, and also distribution fee as charged to those who start a franchise business.

What is Franchise Fee and Royalty Fee?

If you want to start a franchise business, you as a franchisee must pay a number of fees which are called franchise fees to the franchisor.

In addition to these fees, you also have to pay a royalty fee.

You must pay the fee within a certain period of time as determined when the franchise runs.

Then when do you have to make the payment?

For this reason, it can be in accordance with the agreement you have made before. So, which one should you choose? Business package or franchise?

Differentiation of Business Packages with Franchises or Franchises

Well, if you feel indecisive and confused in determining a business package or franchise, then you can see the difference between a business package and a franchise or franchise below:

• Operational methods

One thing you need to know is that all the things in a franchise business will certainly be more structured, if compared to ordinary business packages.

In a franchise business, usually business continuity such as the marketing system is centralized.

Simply put, for a franchise business, the marketing system has been provided by the franchise seller.

Well, while in the business package business, you can be creative as you want. Because the seller of the business package you bought does not interfere anymore. So, you can sell the business package you buy with the marketing system however you want.

• Use of IPR

When you start a franchise business, you are obliged to use the predetermined IPR.

Meanwhile, if you choose to start a business package business then you can use your own brand to build a brand.

• Franchise Registration Certificate (FRC)

If you choose to start a franchise business, you will get an FRC that has been issued by the Ministry of Trade.

However, if you want to start a business package business, you don't have to have this FRC.

• Price

The price issue is also one of the factors that distinguish between a business package and a franchise or franchise.

In general, the price of the business package will be sold at a relatively affordable price, because it targets those who want to open a business but only have a small capital.

For the business package, you only need to pay it once and you don't need to pay again next.

As for franchise or franchise businesses, the prices offered will tend to be more expensive.

Plus you have to pay another royalty fee to the franchisor.  However, nowadays there are also many franchises that offer partnership or franchise opportunities, if you feel interested in joining a franchise company.

Which One is More Suitable?

Well, now you know the difference between business packages and franchises.

In essence, whatever business you want to choose, be it a business package or a franchise, you must try your best and as much as possible so that the business is successful.

Maybe the price of a franchise franchise is indeed more expensive when compared to a business package, but by joining a franchise business, you have already got a name and you don't have to fight too much extra so that your brand name is known to the public.

However, if you have mediocre capital then you can try to buy a business package first.

See how the market responds to the brand you are selling. If the public response is good, you can open another branch of your business package.

Or, when your capital is sufficient, you can start opening a franchise business and live it with a business package that you already have at once.

The point is, from the reviews about the difference between a business package and a franchise or franchise above, you can choose the type of business that suits the conditions and capital you have.

Both of them definitely have their own pros and cons. So, consider in advance which one can provide maximum profit in a long period of time for you.

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