E-business, or electronic business, usually reiterates to businesses that are operated over the Internet. The Internet is a cheap and efficient business tool. It facilitates access to both customers and suppliers, and expands the market reach of any business. By helping firms leverage the Internet, e-business applications improve the productivity of enterprises and increase their competitiveness. With the growing popularity of the Internet the number of e-businesses has been increasing exponentially.
A franchise for e-business is defined in the same way as it is for a traditional business – a business arrangement in which knowledge, expertise and often a trademark or trade name are licensed to an operator, generally for an initial fee and a yearly payment . The only difference is that e-businesses are operated over the World Wide Web. Successful e-business franchises understand that e-business adoption is about finding new customers, improving existing customer relationships, streamlining ordering processing with suppliers, managing their inventory better and implementing other e-business solutions that can help them save money and offer better service to their customers.
Several e-business franchises exist today to sell books, auto parts, toys for kids, leasing cars among others. Running a real brick-and-mortar franchise, like McDonald? S, usually costs more than setting up and running an e-business franchise. The businesses running an e-franchise needs to have just a few warehouses instead of a few real franchises all across the country? and orders over the Internet for the goods can be fulfilled out of these warehouses.
However, before becoming a franchisee of an e-business, one should thoroughly examine the credentials of the business. This is important to avoid online scams, fly-by-night-operators, unethical and illegal businesses, and get-rich-quick schemes. Moreover, one should ask for a disclosure document if one is interested in a franchise. This document is required by the law and provides detailed information about comparing one business with another. One should steer clear of companies which do not have disclosure documents.
Thus, if adequate precedents are taken, becoming a franchisee of an e-business with the right business model and predictable revenues is a lucrative option.