This document discusses franchising. It defines franchising as granting the right to use a business's model and brand for a set period of time. The key parties in franchising are the franchisor, who owns the business model, and the franchisee, who pays fees to use the franchisor's brand. There are advantages for both parties: franchisees gain an established brand and business support, while franchisors can expand their business with less capital and risk. The document outlines the types of franchising and perspectives of both franchisors and franchisees.

1. FRANCHISING
AJI R LAL

2. CONTENTS
1.Franchising
2.Parties involved in
franchising
3.Type of Franchising
4.Advantages
5.Franchise Perspective
6.Conclusion

3. FRANCHISING
Franchising is the practice of the right to use a firm's
business model and brand for a prescribed period of
time.
It is a deal between a franchisor and franchisee. Here
franchisor agrees to share his trademarks, copy
rights, technological knowhow, with franchisee. In
return of which the franchisee has to pay a fixed
amount of royalty to the franchisor.

4. CONT…
Essentially, and in terms of distribution, the franchisor
is a supplier who allows an operator, or a franchisee, to
use the supplier's trademark and distribute the
supplier's goods. In return, the operator pays the
supplier a fee

5. PARTIES INVOLVED IN FRANCHISING
The parties involved in franchising are franchisor and
franchisee.
Franchisor is a person who has an existing business
and wants to expand or diversify it.
Franchisee is a person who wants to invest his capital in
the existing business of franchisor.

6. TYPE OF FRANCHISING
1. Manufacturing
2. Retailing
3. Standardized business structure

7. ADVANTAGES OF FRANCHISING
• Enables franchisee to use brand name of the franchisor.
• Enables the franchisee to enter the well-established business.
• Enables the franchisee to get marketing support from
franchisor.
• Franchisee can be aware of the new technologies used by
franchisor.
• Franchisee can use reedy made business plan developed by
franchiser.

8. FRANCHISE PERSPECTIVE

9. FRANCHISE PERSPECTIVE
Two kind of perspective;
1.Franchisor's
2.Franchisee’s

10. THE FRANCHISOR'S PERSPECTIVE
1. Lesser capital needs
2. Shared risk
3. Quicker expansion
4. Local motivation.
5. Opportunity and risk
6. Effective division of work generates less overhead and
less risk

11. FRANCHISEE’S PERSPECTIVE
• Get to know the local growers
• Promote a healthy lifestyle
• Grow with the industry
• Embrace the innovative concept that is the driving
force

12. CONCLUSION
For the franchiser, the franchise is an alternative to
building "chain stores" to distribute goods that avoids
the investments and liability of a chain. The franchisor's
success depends on the success of the franchisees. The
franchisee is said to have a greater incentive than a
direct employee because he or she has a direct stake in
the business.

13. THANK YOU