1. October 16, 2013
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2. Session 2
Tactical Franchise Format
October 16, 2013
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3. Channels to market?
Potential routes-to-market…
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Retail
Direct
Reseller
Wholesale
Online
Multi-level
Mobile
…or a matrix!
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4. Leveraging options?
Options for leveraging your business…
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Corporate financing
Franchising
Co-operative
Joint Venture
Merger & acquisition
…or a matrix!
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5. Franchise types – Single & Multi-Unit
• Single-unit (direct-unit) franchise
• Rights to open & operate ONE franchise unit. Simplest & most common format.
Possible to purchase additional single-unit franchises, thus a multiple / single-unit
• Multi-unit franchise
• Area development
• Right / obligation to open & develop more than one unit, during a specific time,
within a defined territory
• Master franchise (sub-franchising)
• Additional to above - right to grant sub-franchises within the territory. Takes over
certain franchisor tasks, duties &benefits, such as support &training. Receives portion
fees &royalties
• Area representative
• Multi-unit hybrid. Territorial right to grant & service unit franchisees in the territory.
No direct unit franchisee contract (direct with franchisor). Receives portion of the
initial & ongoing fees
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6. Franchise alternatives
• Distributorship
• Contractual relationship with supplier, to buy & sells. Familiar with
local markets & customers. May do business with many
companies, more than just the supplier/producer. May not receive
contractual support & training from the supplier/producer like
franchisees
• Licensing
• Licensee pays for the rights to use a particular trademark, without
the same significant control over the operations. Licensors mainly
interested in royalties and supervising the use of the license rather
than influencing the operations of the business
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7. Franchise Knowledge Series
International Workshop on Franchising & Business Growth
20 October, 2013
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