DEFINITIONArrangement here one part (the franchisor) grantsanother party (the franchise) the right to use itstrademark or trade name as well as certain businesssystem and processes.
Main points and profits Immediate name recognition Tried and tested products Standard building design and decor Training of employees
ADVANTAGE Reduces the risk for being a proven concept: a franchise can leverage the experience of the franchisor in the bussines and provides some guarantee. Support to start the business: this inicial support should incluide items such as: help me choose the right local
DiSADVANTAGE The franchisor has to share your business with a group of independent traders Thefranchisors from abroad prefer to develop in neighboring countries Franchisees lose much of its commercial independence
CHARACTERISTICS The contract is the cornerstone of the entire franchise system. Right to use a trademark. Transmission of the set of knowledge and experiences that are the Know-how (know-how)
CHARACTERISTICS (Cont.) Defining the economic parameters of access to the franchise network original business concept Complete and comprehensive initial training of the franchisee and staff. Service and continued assistance to franchisees
TYPES OF FRANCHISING According to the rights granted:Individual Franchise, Franchise and Franchise multiple master. According to the subject of the franchise or branch of economic activity:Industrial franchise, distribution franchise, Franchise brand or franchise products and non-exclusive distribution, exclusive distribution franchise and Franchise conversion According to the evolution of the concept, and transmission rights transferred know-how:Brand franchise or first generation, business Franchise or Franchise second generation and third generation format
SOME TYPES OF FRANCHISING Franchising industry: in this franchise, the franchisee establishes and operates an industrial, low technological concepts, consulting, and training brand that gives the franchisor. Multiple Franchising: through this kind of contract rights are transferred to open several stores in a defined geographic area, to a single franchisee, which is required to operate them without giving all the rights purchased from third Franchising business or second generation: besides the assignment of the trademark is granted in the form of business operation, "recipe", but this advice does not extend in time, or the depth of knowledge transferred.