FRANCHISING Commercialization and services, where the franchisor offers through a contract, the authorization for the distribution, production and sale of goods and services successful the franchisee for a specified period.
WHO MAKE UP A FRANCHISING Franchisor: Franquiciante Franchisee: Franquiciado The function of franchising contract is to regulate relations between franchisor and franchisee, providing obligations for both parties.
ELEMENTS Brand positioning in the market. Transmission of knowledge, experience franchisor. License of items of property continued provision of technical assistence to the franchisee.TYPES OF FRANCHISING• Excess product or trademark• Business Format Franchising• Franchising by convention• Social franchising
ADVANTAGES DISADVANTAGESReputation Less IndependenceWorking Capital StandardizationExperience slowManagement Assistance Cancellation of the contractUtilities Control of franchiseMotivation Competitor
FRANCHISOR ADVANTAGE DISADVANTAGESFastest growing business Investment in training and supervision.New segments The investments are recovered in the medium and long term.Expansion to national and Possible omission ofinternational markets franchisse on revenue, reducing royalty payments.The expansion is done with Undisciplined franchiseeother people´s money. that can alter the quality.Constant income through Little discipline by theroyalties. franchisee.Gets creative partners.No financial responsibility incase of bankruptcy of thefranchisee.
OBLIGATIONS Transmit secrets, trademarks, patents a franchisee Technical and commercial support to the franchisee during the term of the contract. Provision of services / products Clauses franchisee activity Clause in favor of the franchisee
FRANCHISEE ADVANTAGE DISADVANTAGESStart a business with little No acceses to ownershipcapital business of the brand.recognition Allow monitoring and control of the franchisor.the prestige of the brand The contracts are short (5succes probability years)Franchisor providers Payment of entry.Help in the areas of sometimes maladaptive tomarketing, fanancial. the philosophy of the franchisor.Learn constant new loss of businessservices/ products. independence.exclusivity zone. Maintain an unwanted parther, the duration of the franchise.
OBLIGATIONS Invest in the business under the franchisors instructions. Payments or credits on royalties Conduct a minimum annual sales figure Use or sell the products of the brand of the franchisor to maintain a uniform image. Duty not to compete during and after a contract year ended.
LICENSEIt is where the trade mark owner authorizes use a third in exchange for financial compensation.DIFFERENCE BETWEEN LICENSEAND FRANCHISINGIn the franchising, the franchisee is subject toadditional obligations; In the license there is freedom ofbrand, accordance with the protocols signed.