FRANCHISING

Franchising is based on a marketing concept which can be

adopted by an organization as a strategy for business expansion.
Where implemented, a franchisor licenses its know-how, procedures,
intellectual property, use of its business model, brand, and rights to
sell its branded products and services to a franchisee.

What do you mean by franchising?

Franchising is a form of business by which the owner (franchisor)

of a product, service or method obtains distribution through affiliated
dealers (franchisees). If buying an existing business doesn't sound
right for you but starting from scratch sounds a bit
intimidating, you could be suited for franchise ownership.

What is Franchise example?

In business format franchises (which are the most common type),

a company expands by supplying independent business owners with
an established business, including its name and trademark. ... Fast
food restaurants are good examples of this type of franchise.
Prominent examples include McDonalds, Burger King, and Pizza Hut.

What is a franchising model?

According to Franchising.com, franchising is a "hybrid" form of

business model in that it combines aspects of a sole proprietorship
with those of a corporation. Franchising allows a business owner to
grown a business by selling the rights to use her brand and
business model instead of building new units on her own.

Is KFC a franchise?

kfc franchise requirements. It is not easy to become a kfc

franchise owner. As one of the biggest franchise brands in the world,
with over 800 kfc restaurants in the UK and Ireland alone, kfc carefully
selects their franchisees to ensure the continuation of their success.

What are the types of franchising?

There are three different types of franchises which you can

choose from, they vary in terms of your position, your input into the
business and the amount of involvement of the franchisor. The
three types of franchises are; the business format franchise, product
distribution franchise and management franchise

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 Is Coca Cola a franchise?

Coca-Cola Company Franchise Information. Coca-Cola is

a franchise as a product distribution system and the largest beverage
company in the world.

Buy a franchise
Advantages and disadvantages of franchising
Buying a franchise can be a quick way to set up your own business without
starting from scratch. There are many benefits of franchising but there are also a
number of drawbacks to consider.

Ten advantages of franchising

 The risk of business failure is reduced by franchising. Your business

is based on a proven idea. You can check how successful other
franchises are before committing yourself.
 Products and services will have already established a market share.
Therefore there will be no need for market testing.
 You can use a recognised brand name and trade mark. You benefit
from any advertising or promotion by the owner of the franchise - the
'franchisor'.
 The franchisor gives you support - usually as a complete package
including training, help setting up the business, a manual telling you
how to run the business and ongoing advice.
 No prior experience is needed as the training received from the
franchisor should ensure the franchisee establishes the skills required
to operate the franchise.
 A franchise enables a small business to compete with big businesses,
more so than an independent small business, due to the pool of
support from the franchisor and network of other franchisees.
 You usually have exclusive rights in your territory. The franchisor
won't sell any other franchises in the same territory.
 Financing the business may be easier. Banks are sometimes more
likely to lend money to buy a franchise with a good reputation.
 You can benefit from communicating and sharing ideas with,
and receiving support from, other franchisees in the network.
 Relationships with suppliers have already been established.

Eight disadvantages of franchising

 Costs may be higher than you expect. As well as the initial costs of
buying the franchise, you pay continuing management service fees and
you may have to agree to buy products from the franchisor.

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 The franchise agreement usually includes restrictions on how you can
run the business. You might not be able to make changes to suit your
local market.
 You may find that after some time, ongoing franchisor
monitoring becomes intrusive.
 The franchisor might go out of business.
 Other franchisees could give the brand a bad reputation, so the
recruitment process needs to be thorough.
 You may find it difficult to sell your franchise - you can only sell it to
someone approved by the franchisor.
 All profits (a percentage of sales) are usually shared with the
franchisor.
 The inflexible nature of a franchise may restrict your ability to
introduce changes to the business to respond to the market or make
the business grow.

What is a franchise and how does it work?

A franchise enables you, the investor or franchisee, to operate a

business. You pay a franchise fee and you get a format or system
developed by the company (franchisor), the right to use the
franchisor's name for a specific number of years and assistance.

What is franchising in simple terms?

What Exactly Is a Franchise? A franchise, in

its simplest definition, is a business opportunity that allows
the franchisee (possibly you) to start a business by legally using
someone else's (the franchisor's) expertise, ideas, and processes.

What is the purpose of franchising?

The primary reason most entrepreneurs turn to franchising is that

it allows them to expand without the risk of debt or the cost of equity.
First, since the franchisee provides all the capital required to open and
operate a unit, it allows companies to grow using the resources of
others.

What are the main features of a franchise?

All of these characteristics can be observed in

successful franchise systems.
The seven key characteristics are:
 Alignment. ...
 Commitment. ...
 Mutual interest. ...

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 Communication. ...
 Accountability and responsibility. ...
 Professional conduct. ...
 Pre-agreed dispute resolution.

How do you start a franchise?

Here are the 7 steps to take when opening a franchise:
1. Do Your Initial Research. ...
2. Attend Discovery Day. ...
3. Review Your Franchise Agreement. ...
4. Get the Right Franchise Funding. ...
5. Choose a Franchise Location. ...
6. Take the Provided Franchisee Training. ...
7. Prepare for Opening Day. ...
8. Bottom Line – How to Open a Franchise.
Advantages of buying a franchise
Franchises have a higher rate of success than start-up
businesses. You may find it easier to secure finance for a franchise. ...
Franchises often have an established reputation and image, proven
management and work practices, access to national advertising and
ongoing support

Full list of top five franchises since 2001

 Subway.
 The UPS Store.
 McDonald's.
 Jiffy Lube International.
 Taco Bell.

How does KFC franchise work?

What is KFC franchise fee?
How much is Mcdonalds franchise?
What are the three conditions of a franchise agreement?
What are the two types of franchises?
What is Coco and Fofo?
What is the biggest franchise in the world?
Is Pepsi owned by Coca Cola?

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Is Pepsi Cola a franchise?
What are the disadvantages of a franchise?
What are the main disadvantages of a franchise?
when did franchising start?
What are the most successful franchises?
Is Pizza Hut a franchise?
What does a 7/11 Franchise cost?
How does a franchise work?
What is a successful franchise?
Can I start a franchise with no money?
How much money do you need to start a franchise?
Are gas stations franchises?
Is buying a franchise a good idea?
What is the cheapest franchise to buy?
What to know before buying a franchise?
Is KFC a franchise?
Is Coca Cola a franchise?
What are the hottest franchises?
What are franchisor duties?
What is franchising in simple terms?
What is an example of a franchise?

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