Franchising is a business model where a franchisor licenses a franchisee to use its trademark and business systems for a specified period. There are three types of franchises: business format, product, and manufacturing, each with distinct relationships and operational guidelines. The document also outlines well-known franchises, their founding years, and the pros and cons of franchising, including advantages like reduced risk and disadvantages like lack of independence.

1. Franchising

2. Submitted By:
 Hassan Ali Khan
 Iqra Raheel
 Amna Ishfaq
 Muhammad Umair
 Malik Asif

3. Introduction
 Franchising is an arrangement where one
party (the franchisor) grants another party
(the franchisee) the right to use its trademark or
trade-name as well as certain business system
and processes, to produce and market a
good or service according to certain
specifications.

4. Introduction
 It is for limited period of time.
 Franchiser and franchisee are basically business
partners

5. Terms
Franchisor:
 Franchisor is the Licensing company. Which gives license to use
company’s tradename, trademark etc.
Franchisee:
 Franchisee is the one who purchases a franchise

6. Terms
Franchise:
 It is basically Right to use Specific business name and sell
Goods and Services under that name
Franchising:
 It is a cooperative relationship between franchisor and
franchisee

7. Types Of
Franchises

8. Three types of
franchises:
 Business Format Franchises.
 Product Franchises.
 Manufacturing Franchises.

9. “THE FRANCHISEE NOT ONLY DISTRIBUTES FRANCHISOR’S
PRODUCTS AND SERVICES UNDER THE FRANCHISORS’S
TRADEMARK BUT ALSO IMPLEMENTS FORMAT OF
FRANCHISOR’S PROCEDURE OF CONDUCTING Business”.
BUSINESS FORMAT FRANCHISE:

10. “franchise that simply sells the product of the franchisor and
have supplier-dealer relationship”.
PRODUCT FRANCHISES:

11. “which converts raw material by processing and
manufacturing the material for getting its real form”.
MANUFACTURING FRANCHISES:

12. World Famous
Franchises

13. Anytime Fitness:
 Health and Fitness club
 3,000 franchised located in 20 countries
 Founded in 2002
Denny’s:
 Restaurants
 1600 franchises
 Founded in 1953
 Started franchising in 1963

14. Dunkin’ Donuts:
 Food and Beverages
 12,000 restaurants in 36 countries
 Founded in 1950
 Franchising started in 1955
7-Eleven:
 convenience Stores
 56,6oo stores in 18 countries
 Founded 1927
 Franchising started in 1964

15. McDonald’s:
 Fast Food Restaurants
 36,615 franchises in 119 countries
 Founded in 1955
 Franchising started in 1955
Subway:
 Fast Food Restaurant
 44,882 restaurants in 112 countries
 Founded in 1965
 Franchising started in 1974

16. Papa John’s:
 Pizza Restaurant
 Founded in 1985
 Franchising started in 1986
 Franchises at 4,700 locations
Baskin Robins:
 Ice cream Shop
 Founded in 1945
 Franchising started in 1948
 Franchises at 7,600 locations

17. Hampton Inn:
 Hotels
 2.000 hotels in 16 countries
 Founded in 1984
 Franchising Started in 1984
Jimmy john’s Gourmet Sandwiches:
 Sandwich Restaurant
 2,500 locations in 46 states
 Founded in !983
 Franchising started in 1993

18. ADVANTAGES
OF FRANCHISE

19. Less Risk
Proven Idea
Market Share
Recognized Brand Name

20. Support and training
Banks easily give loans

21. Disadvantages
of franchising

22. Lack of
independence
Cost may be
higher
By products
from
franchisor

23. Profit share
Inflexible Nature
Agreement Restrictions

24. Agreement

25. Agreement
Agreement contain information on the following points;
 Fees and initial cost
 Life of franchise
 Restriction upon purchase of material

26.  Record keeping requirements
 Controls of operations and performance standard
 Location and territorial rights

27. Use of Company name
Management Training
Wholesale prices on purchases
Franchisor Guarantees

28. Franchisee Obligation
Paying Franchise Fees
Meeting Quality Standards
Following procedures

30. The Code is divided into four parts:
Disclosure
Conditions of franchise agreement
Resolving Disputes
Preliminary