Franchising is a distribution of products and / or services, whereby a company which has achieved commercial success, transferred to another independent entrepreneur all his expertise and experience on the original business, in exchange for an initial right a royalty rate monthly.
1. The franchisor: 2. The franchisee: lends his monthly pays a trademark or trade percentage of sales name and (royalties) and transmits its initially pays the "Know How" franchisor a fee for the right to be trading using the system name and the Franchisor
The franchisor found in this formula great expandability of your business with a contribution of capital not very high. Creating a strong brand. There will be a multiplier effect that will strengthen the presence of the franchisors brand in the market. Profitability of marketing and communication efforts
Reduction of independence, the franchisor will share their brand, experience, knowledge and generally their own business. Reduced control over business units franchisees, the franchisor has input and involvement of a franchised business.
Guarantee of independence and integration into a commercial network and identified clearly appreciated by the public. Acquisition of know-how of the franchisor. The franchisee will have help in conducting market research,
Payments to the franchisor, to acquire a franchise we are required to pay for the service or leave a mark part by royalties. Little Independence. Termination of the contract.
BRAND LICENSING:The main function of a trademark or service mark is to distinguish thegoods or services of one undertaking from those of itscompetitors, often identifying the origin of them and making implicitreferences to the quality and reputation of the company. TRANSFER OF KNOW HOW:Knowledge developed by an organization or society as a result oflearning and experience acquired and which are the key to its success.In most cases, we try to remain secret, but can also be transferred toother companies in exchange for a fee.
ROYALTIES:Royalties are an important source of funding for regional development to beadministered according to the principles oftransparency, efficiency, impact, equity and sustainability. TERRITORYThe territory is a part of the surface of the world belonging to a nation within thatsurface creates a country that is inhabited by a people who tend to have thesame customs and habits, country by using borders or boundaries defines itsterritory over neighboring nations
CONFIDENTIALITYThis is a property that is intended to ensure information access toauthorized persons only.When there is sensitive information, officials decide who or who isentitled to access the data.
FRANCHISE AGREEMENT The franchise agreement is a legal document based on contract law and necessarily in the confidence of both parties The franchise agreement is an agreement whereby the franchisor grants the franchisee a license on payment of a fee, to exploit the system that the company has created. The franchise system is usually a package including intellectual property rights, such as rights to use the trademark, trade names, logos and the "start-up" business Typical franchise system
In exchange for an agreed amount, the franchisee is granted a license to conduct its business in accordance with the prescribed by the franchisor. This will usually include marketing and advertising, store design and the "implementation“ The franchisor is also contractually obligated to support, encourage and assist the franchisee. The franchisee for its part must maintain and promote the franchise and conduct business exposed in manuals and best practice guidelines system. The franchisee also has an ongoing obligation to pay maintenance fees to the franchisor as stipulated in the franchise agreement