Documente Academic
Documente Profesional
Documente Cultură
By:
Shahzad Arain
Shahzad.cdcu@gmail.com
http://pakdata.net
OUTLINES
• Franchising Terms
• Types Of Franchises
• The Advantages Of
Franchising
• The Limitations Of
Franchising
Franchising Terms
•Franchising
A marketing system revolving around a two-party legal
agreement, whereby the
franchisee conducts business according to the terms
specified by the franchisor
• Franchise Contract
The legal agreement between franchisor and franchisee
• Franchise
The privileges conveyed in the franchise contract
Franchising Terms
•Franchisee
An entrepreneur whose power is limited by a contractual
agreement with a franchisor
•Franchisor
The party in the franchise contract that specifies the methods
to be followed and the terms to be met by the other party
Types of Franchises
•Product and Trade Name Franchise
Grants the right to use a widely recognized product or name
•Piggyback Franchising
The operation of a retail franchise within the physical
facilities of a host store
Types of Franchises
•Master Licensee
An independent firm or individual acting as a sales agent
with the responsibility for finding new franchises within a
specified territory
•Multiple-Unit Ownership
Holding by a single franchisee of more than one franchise
from the same company
•Area Developers
Individuals or firms that obtain the legal right to open
several franchised outlets in a given area
The Advantages & Disadvantages of
Franchising
Pluses Minuses
Formalized training Franchise fees
• Franchise costs
-Initial franchise fee
-Royalty payments
-Advertising costs
• Loss of independence