2. FRANCHISING
Commercialization and
services, where the
franchisor offers
through a contract, the
authorization for the
distribution, production
and sale of goods and
services successful the
franchisee for a
specified period.
3. WHO MAKE UP A FRANCHISING
Franchisor: Franquiciante
Franchisee: Franquiciado
The function of franchising contract is to
regulate relations between franchisor and
franchisee, providing obligations for both
parties.
4. ELEMENTS
Brand positioning in the market.
Transmission of knowledge, experience
franchisor.
License of items of property continued provision
of technical assistence to the franchisee.
TYPES OF FRANCHISING
• Excess product or trademark
• Business Format Franchising
• Franchising by convention
• Social franchising
5. ADVANTAGES DISADVANTAGES
Reputation Less Independence
Working Capital Standardization
Experience slow
Management Assistance Cancellation of the
contract
Utilities Control of franchise
Motivation Competitor
6. FRANCHISOR
ADVANTAGE DISADVANTAGES
Fastest growing business Investment in training and
supervision.
New segments The investments are
recovered in the medium
and long term.
Expansion to national and Possible omission of
international markets franchisse on revenue,
reducing royalty payments.
The expansion is done with Undisciplined franchisee
other people´s money. that can alter the quality.
Constant income through Little discipline by the
royalties. franchisee.
Gets creative partners.
No financial responsibility in
case of bankruptcy of the
franchisee.
7. OBLIGATIONS
Transmit secrets, trademarks, patents a
franchisee
Technical and commercial support to the
franchisee during the term of the contract.
Provision of services / products
Clauses franchisee activity
Clause in favor of the franchisee
8. FRANCHISEE
ADVANTAGE DISADVANTAGES
Start a business with little No acceses to ownership
capital business of the brand.
recognition Allow monitoring and
control of the franchisor.
the prestige of the brand The contracts are short (5
succes probability years)
Franchisor providers Payment of entry.
Help in the areas of sometimes maladaptive to
marketing, fanancial. the philosophy of the
franchisor.
Learn constant new loss of business
services/ products. independence.
exclusivity zone. Maintain an unwanted
parther, the duration of the
franchise.
9. OBLIGATIONS
Invest in the business under the franchisor's
instructions.
Payments or credits on royalties
Conduct a minimum annual sales figure
Use or sell the products of the brand of the
franchisor to maintain a uniform image.
Duty not to compete during and after a contract
year ended.
10. LICENSE
It is where the trade mark owner authorizes use a
third in exchange for financial compensation.
DIFFERENCE BETWEEN LICENSE
AND FRANCHISING
In the franchising, the franchisee is subject to
additional obligations; In the license there is freedom of
brand, accordance with the protocols signed.
