About Franchising

1. TITLE OF THE PRESENTATION
Business terminology and communication in English 1 Academic year
2022/2023
Harinarayan Dhasaputhran

2. FRANCHISING

3. INTRODUCTION
Franchising is an arrangement in which the franchisor
gives the franchisee the right to distribute and sell the
franchisor’s goods or services and use its business name
and business model for a specified period, and possibly
covering a geographical area.

4. History of Franchising
4
• The earliest signs of franchising in the united states date
back to 1850’sjust after Isaac Singer invested Sewing
machine.
• The problem was lack of capital for manufacturing the
machine.
• Singers idea got noticed and over the next several
decades many other companies began to copy and
enhance the business model franchising.
• Later Companies such as McDonald’s andBurger king
took franchising to a whole new level.

5. History of Franchising
5
• Franchisor is the entity or person owning to the rights or
license of the business.
• Authorization granted by a manufacture to a distributor
or dealer to sell hisproducts.

6. Definition of Franchisee
6
• An individual or a company who purchases and runs a
franchise.
• Franchisee is the party in franchising agreement that is
purchasing the rights to use business trademarks,
associated marks &other proprietary knowledge in order
to open branch.
• An individual or a company owning rights or license of
business.
• Franchisor is a person who grants the license or
permission to various franchisees

7. Definition of Franchisor
A franchisor is a person or company that grants a
license to a franchisee to operate a business using
its brand name, products, services, and operational
methods in exchange for a fee and ongoing royalties.
The franchisor provides the franchisee with training,
support, and access to the franchisor's established
business model, marketing materials, and intellectual
property. The franchisor typically retains significant
control over how the franchisee operates the
business to ensure consistency with the franchisor's
brand and standards.

8. Types of Franchise
8
• Business format
• Product or trade name
• Dealership
• Master Franchise
• Unit Franchise
• Regional Franchise

9. Business Format Franchise
9
• Business Format Franchise is the most popular form of
Franchising.
• Agreements under this Franchisor offerare:
• Use trademark
• Advertising

10. Product or trade name Franchise
10
• Product Franchise or Trade Franchise0nlyinvolves
product.
• Agreements under this Franchisoroffer are:
• Allows Using trademark
• The manufacture grants a Franchise the authority to
distribute goods

11. Dealership or Distributorship ,Licenses,
Agencies
11
• Dealership and distribution ship Format Franchise is the
also most popular form ofFranchising.
• Allow to sell Franchiser product under their own
trademark.
• Agencies Format Franchise Own the rights to sell
products on behalf of asupplier.

12. Manufacturing &Unit Franchise
12
• Manufacturing Franchise provide an organizationwith
the right to manufacture
• Examples include Coca Cola.
• Unit Franchise is granted the right to operate one unit.

13. Master Franchisee
AMaster Franchisee is granted the rights to a substantial
territory, usually a whole country.
• This a structure adoptedby many Franchisee.
Franchisor
Unit Franchise
Unit Franchise
Master
Franchisee
13

14. Regional Franchisee
In a Geographically large area Master Franchisee may
decide to appoint RegionalFranchisee
Franchisor
Unit
Franchise
Unit
Franchise
Regional
Franchisee
Regional
Franchisee
Unit
Franchise
Unit
Franchise
14

15. Multiple Franchisee
15
Some Franchisees operates not just one unit but several.
•
Franchisor
Unit Franchise

16. Developers
Large corporations sometimes prefer toexploit their
territory by opening outlets themselves.
•
Franchisor
Developers
16

17. Advantage of Franchise
17
• Increase number of outlet with minimum capital
• Name recognition
• Running small business under Franchise name is very
beneficial

18. Advantage of Franchise
18
• Big Business help in corporate marketing.
• Proper &effective marketing tactic.
• Training &Management facilities

19. Disadvantage of Franchise
19
• It has to control and coordinate a network of semi
independent businessmen.
• Indulgence of big business into smallbusiness.
• Safe guarding the interest of both the parties are
complex.

20. Disadvantage of Franchise
20
• Much time is required while selecting a Franchise
• Complex procedure

21. CONCLUSION
To be summarise, franchising is a
business model in which a franchisor
grants a franchisee the right to use its
trademark, business processes, and
operating system to sell a product or
service. The franchisee is required to
follow the franchisor's rules and
procedures in exchange for support and
assistance in starting and operating the
business. Franchising can offer many
benefits to both the franchisor and
franchisee, including a proven business
model, brand recognition, and
economies of scale.

22. REFERENCES
https://tcfranchising.ph/what-is-franchising/
https://www.slideshare.net/MAC_V/franchising-14459489
https://franchisealpha.com/do-you-want-to-know-how-do-i-start-
franchising/