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  1. 1. Karen Tatiana JaramilloMaribel Urquina Tovar FRANCHISING
  2. 2. WHAT IS FRANCHISING?Transfer TechnologyBusiness SystemBrand NameTrademarkAnd others property rights
  3. 3. WHO ARE IMPLICATED IN THE FRANCHISE? Franchisor Franchisee• Developed the • Buys the right to business or operate under product. the franchisor’s• Lends its name brand name or or trademark to trademark. it.
  4. 4. WHO ARE IMPLICATED IN THE FRANCHISE? (CONT.) The franshisee The franchisor depends on the depends on the franshisor for the frenchisee for business system royalities or fees.
  5. 5. THE FRANCHISE AGREEMENT 3. A detailed 1. A detailed 2. A detailed 5. A detailed list of issues 4. A detailedlist of issues to list of issues to list of issues pertaining to list of issues consider consider pertaining to the buildings, pertaining to regarding the regarding the termination equipment, the operating cost of the location of the and renewal and supplies practices terms franchise franchise terms terms
  6. 6. ADVANTAGES AND DISVADVANTAGES OF FRANCHISING - Is an inexpensive way of exploiting a foreing market - Little or no political risk is involved - The risks of failure and its associated costs are borne by the franchisee - It is a fast and relatively easy (brand name and standardized business system) - The franchisee may spoil the franchisors image by not upholding the standards for quality established by the franchisor - Exercising control over the franchisee may be very difficult - Franchisees may attempt to deviate from the polices and standards established by the franchisor - Franchisees may fight attempts by the franchisor to implement changes -The franchisor is able to terminate the agreement.
  7. 7. EXAMPLES In the following link you can find several options where franchises offer the best benefits to the franchisee -estrella.htm