2. What is Franchising ?
A continuing relationship
in which a franchisor
provides a licensed
privilege to the franchisee
to do business and offers
assistance in organizing,
training, merchandising,
marketing and managing
in return for a monetary
consideration.
3. Which are types of franchising?
There are several types of classification
franchises to keep in mind when trying to
acquire a business with prestige, since
everything depends on the item to which
you want to spend. Here are some
variations:
• Commercial Franchise
• Industrial Franchise
• Distribution franchise
• Service Franchise
5. FRANCHISOR
A franchisor is a person who grants a
franchise to a franchisee. A franchisor also
has the right to administer continuous
control during the franchise term over the
franchise business operation.
6. The assets and value that a "franchisor" brings to the
"franchising table", includes or, at least, should
include:
• Proven business model
• Recognized Trademark and Brand
• Established Business Systems
• Training and Support
7. FRANCHISEE
A franchise is a right granted to an individual or
group to market a company's goods or services
within a certain territory or location. Some examples
of today's popular franchises are McDonald's,
Subway, Domino's Pizza, and the UPS Store
8. ADVANTAGES OF BUYING A
FRANCHISE
There are many advantages to buying a
franchise. Some of these advantages are:
• Corporate image
• Training
• Savings in time
9. WHAT ARE THE ADVANTAGES
OF FRANCHISING?
• About 91% of all franchisees reported profitability over
the last 12 months.
• The business format is proven.
• You have the opportunity to build your capital as well
as your earnings.
• It is your business and you are the owner manager,
providing you follow the system, you decide what
goes.
• The major banks are very supportive of good
franchising.
10. WHAT ARE THE DISADVANTAGES OF
FRANCHISING?
• Running any business is hard work, demanding the
highest level of personal and family commitment.
• You make a financial investment, however, no
investment is guaranteed, especially when it depends
on the efforts of both you and your franchisor as well
as the vagaries of the market place.
• You buy into a proven business system for its benefits
but you also take on the responsibility for following it –
not doing so may result in you losing the business.
11. MAJOR FRINCHISING IN THE
WORLD
• Subway (sandwiches and salads)
• McDonald’s
• 7-eleven Inc.
• Hampton Inns and suites (Midprice hotels)
• Great clips (Hair salons)
• H&R block (Tax preparate and now filing)
• Dunkin’ Donuts
