Chapter 6

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Chapter 6

  1. 1. CHAPTER 61) DEFINE & EXPLAIN WHAT FRANCHISING IS.2) EXPLAIN THE 3 MAIN TYPES OF FRANCHISING.3) WHAT ARE SOME ADVANTAGES TO FRANCHISING?4) WHAT ARE SOME DRAWBACKS TO BUYING A FRANCHISE?
  2. 2. FRANCHISING-”SEMI-INDEPENDENT BUSINESS OWNERS (FRANCHISEES) PAY FEES& ROYALTIES TO A PARENT COMPANY (FRANCHISER) IN RETURN FORTHE RIGHT TO BECOME IDENTIFIED WITH ITS TRADEMARK, TO SELLITS PRODUCTS OR SERVICES, & OFTEN TO USE ITS BUSINESS FORMAT& SYSTEM.”
  3. 3. TYPES OF FRANCHISING
  4. 4. 1) TRADE NAME FRANCHISING-THE FRANCHISEE PURCHASES THE RIGHT TO USE THEFRANCHISER’S TRADE NAME WITHOUT DISTRIBUTINGPARTICULAR PRODUCTS EXCLUSIVELY UNDER THEFRANCHISER’S NAME.
  5. 5. 2) PRODUCT DISTRIBUTION FRANCHISING-A FRANCHISER LICENSES A FRANCHISEE TO SELL ITSPRODUCTS UNDER THE FRANCHISER’S BRAND NAME &TRADEMARK THROUGH A SELECTIVE, LIMITEDDISTRIBUTION NETWORK.
  6. 6. 3) PURE FRANCHISING-A FRANCHISER SELLS A FRANCHISEE A COMPLETEBUSINESS FORMAT & SYSTEM.
  7. 7. BENEFITS OF BUYING A FRANCHISE
  8. 8. 1) MANAGEMENT TRAINING & SUPPORT
  9. 9. 2) BRAND NAME APPEAL
  10. 10. 3) NATIONAL ADVERTISING PROGRAMS
  11. 11. DRAWBACKS OF BUYING A FRANCHISE
  12. 12. 1) FRANCHISE FEES & ONGOING ROYALTIES
  13. 13. 2) MARKET SATURATION
  14. 14. 3) LESS FREEDOM

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