Introduction
A franchise is a particular type of license that allows the franchisee to sell goods or provide services to a company on its behalf. This way of doing business helps the company expand into new territories. At the same time, the entrepreneur can freely use the trademark and goods of the organization. For a franchise in a new market, an effective company is Snap-on, a manufacturer of high-quality tools and equipment for the transport sector.
Main Body
Company Background
The tools are designed for professional use in various fields, such as automotive, marine, aviation, and rail. The company was founded in 1920 and, after three years, registered the first patent (Our Company, n.d.). The initial contribution to the implementation of the franchise can be in the amount of 9,000 to 18,000 US dollars. At the same time, the initial investment is approximately from 170,000 to 335,000 US dollars.
Target Market
The target country is the African continent, particularly South Africa and the Congo, as they have been strengthening their economies in recent years. Moreover, the industrial market still needs to be developed there. Hence, the territory is an excellent opportunity for franchising high-quality products from a famous brand and developing the industry on the continent.
For the selected business, the industrial market is better suited. Snap-On Tools offers products used in the professional field and aimed at developing the country’s transport or military services. In the case of the African continent, the franchise has a chance to develop and monopolize the territory.
Company Prospects
Additionally, the project is a good investment, as it allows one to cover a significant geographical area and distribute the products further. This will enable the business to develop globally, increasing the company’s profits and opportunities.
Conclusion
In conclusion, franchising helps companies expand into new markets. Snap-On is an effective organization that distributes goods in the African market by selling goods to other firms. Therefore, South Africa and the Congo are solid economies and are the main sales areas. The industrial market in this area needs to be better developed. Thus, the company has every chance for further distribution and vision of a successful business.
Reference
Our Company. (n.d.). Snap-On. Web.