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FRANCHISE
A form of business where the franchisor sells or provides to a franchisee:
the right to do business under a particular trade name or brand the right to use/sell a proprietary product, process, or service training and assistance in setting up the business a business and marketing plan economies of scale for purchasing and marketing
Ctnd
Entrepreneurship
for people that are not particularly entrepreneurial. regular inspection and quality checks once the business is established a financial (accounting) system
FRANCHISING ????
Arrangement
where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and gains (1) immediate name recognition, (2) tried and tested products, (3) detailed techniques in running and promoting the business, (4) training of employees, and (5) ongoing help in promoting and upgrading of the products.
Franchisor
Franchisee
TYPES OF FRANCHISE
distribution franchise;
Business
product distribution franchise model is very much like a supplier-dealer relationship. the franchisee merely sells the franchisors products. However, this type of franchise will also include some form of integration of the business activities.
Typically,
FRANCHISEE
a business format franchise, the integration of the business is more complete. franchisee not only distributes the franchisors products and services under the franchisors trade mark, but also implements the franchisors format and procedure of conducting the business.
The
MANAGEMENT FRANCHISES
A
form of service agreement The franchisee provides the management expertise, format and/or procedure for conducting the business.
of sales territory Requiring site approval and imposing requirement on the outlets appearance Restricting the goods/ services that can be sold Requiring specific operating hours Controlling advertising
Benefits to Franchisee Benefit of an instant connection with a premium brand Visibility and standing in the market Promotion cost are often brone by the franchiser Helps get out of margin wars Systems / software supprot
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