Franchises are generally known to the public under a
well promoted
name like McDonalds not the names of the individual franchise
owners.
As a result, the general public may not realize that
many businesses are in fact franchises.
Historical Definition Historically, the word franchise meant the granting of
a right or
privilege to an individual or group. In more recent times
it includes
business arrangements known as franchises, licenses,
dealerships and
distributorships, to name a few.
Regulatory Definition Usage of a Common Name (Such as Burger King® or Subway®)
Receives Training, Assistance, and/or Guidance (from
parent company)
Pays A Fee to the Parent Company ($500 or more within
the first 6 months
of operation).If a business Arrangement includes these
three elements,
it's a franchise. It could be called a license, distributorship,
or association
but it's still a franchise and must comply with the rules
of the Federal Trade Commission and certain state regulatory authorities.
Advantages of Franchising
Franchising is booming because consumers like to purchase
goods and
services from familiar names with reliable standards
of service and quality.
They like to deal with businesses where the owner is
on-premise.
Advantages to Buyers
Low Risk
Quicker Setup, Higher Sales, Higher Profit, and Increased Equity
Be Ones Own Boss
Training
Support and Ongoing Assistance
Collective Buying Power
Regional and National Marketing
System, Policies and Procedures
Mutual Destiny
Research and Development
Advantages to the Company
Provides Expansion Capital
Fast Growth
Quality On-Site Management
Fewer Day to Day Headaches
Less Corporate Overhead
Faster Market Penetration
Higher System-Wide Sales
Captive Market For Products
Financial Leverage
Opens Up Regional and National Account Opportunities.
What We Ask of Our Franchise Members
Availability and an appropriate location (rented or owned),
possibly
in a central location. The point of sale should be equipped
by you
following our general guidelines, and contain a telephone,
fax, and
answering machine.
Initial investment in proportion to the size of the point
of sale.
The investment includes:
Exclusive distribution and the right to use our trademark.
Insertion into our network.
National advertisement
Acquisition of know-how
Assistance in estimating costs
Assistance for the publicity campaigns
Technical-business and managerial assistance
How to sign-up
Make contact with the franchisor to make an appointment for
further information. During the appointment, all of the main subjects
of the
franchising relationship will be considered. The potential
franchisee
will be given a copy of the contract to evaluate at his or
her leisure.
Se non vedi i menu sottostanti abilita i cookie su Internet Explorer.
If you can't see the menu below enable cookies on Internet Explorer.
Si vous ne voyez pas le menu desous habilitez les cookies sur Internet Explorer.
