What is Franchising ?A continuing relationshipin which a franchisorprovides a licensedprivilege to the franchiseeto do business and offersassistance in organizing,training, merchandising,marketing and managingin return for a monetaryconsideration.
Which are types of franchising?There are several types of classificationfranchises to keep in mind when trying toacquire a business with prestige, sinceeverything depends on the item to whichyou want to spend. Here are somevariations:• Commercial Franchise• Industrial Franchise• Distribution franchise• Service Franchise
FRANCHISORA franchisor is a person who grants afranchise to a franchisee. A franchisor alsohas the right to administer continuouscontrol during the franchise term over thefranchise business operation.
The assets and value that a "franchisor" brings to the"franchising table", includes or, at least, shouldinclude:• Proven business model• Recognized Trademark and Brand• Established Business Systems• Training and Support
FRANCHISEEA franchise is a right granted to an individual orgroup to market a companys goods or serviceswithin a certain territory or location. Some examplesof todays popular franchises are McDonalds,Subway, Dominos Pizza, and the UPS Store
ADVANTAGES OF BUYING A FRANCHISEThere are many advantages to buying afranchise. Some of these advantages are:• Corporate image• Training• Savings in time
WHAT ARE THE ADVANTAGES OF FRANCHISING?• About 91% of all franchisees reported profitability over the last 12 months.• The business format is proven.• You have the opportunity to build your capital as well as your earnings.• It is your business and you are the owner manager, providing you follow the system, you decide what goes.• The major banks are very supportive of good franchising.
WHAT ARE THE DISADVANTAGES OF FRANCHISING?• Running any business is hard work, demanding the highest level of personal and family commitment.• You make a financial investment, however, no investment is guaranteed, especially when it depends on the efforts of both you and your franchisor as well as the vagaries of the market place.• You buy into a proven business system for its benefits but you also take on the responsibility for following it – not doing so may result in you losing the business.
MAJOR FRINCHISING IN THE WORLD• Subway (sandwiches and salads)• McDonald’s• 7-eleven Inc.• Hampton Inns and suites (Midprice hotels)• Great clips (Hair salons)• H&R block (Tax preparate and now filing)• Dunkin’ Donuts