Franchising
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Transcript of Franchising
History of Franchising
The concept of franchising as we know today
1st started in Germany
In 1851, Singer Sewing Machine Co. began
granting distribution franchises for its sewing
machine. Thus began the modern concept of
franchising
A Franchisor is the owner of the business who
grants the license
A Franchisee is the person who purchases the business name
Types of Franchise
Business Format
Franchise
Product or Trade name Franchise
dealership
Unit Franchise
Master and Regional
Franchises
Business Format Franchise
The most popular form of Franchising
A Franchisor teaches to the franchisee the
entire businesses format
Allows using trademark
Advertising
Fast food restaurants are good examples
Product or Trade name Franchise
Only involves product
Manufacture grants a franchisee the right to
sell its product but with no method of doing
business
Allows using trademark
Dealership or Distributorship,
Licenses, Agencies
Allows to sell Franchiser product under their
own trademark
Own the rights to sell products on behalf of a supplier
Manufacturing and unit Franchise
One of the lesser-known franchise structures
is called a manufacturer franchise
The franchisee would only be responsible for
running one unit
Master Franchisee
A Master Franchisee is granted the rights to a
substantial territory, usually a whole country
Regional Franchisee
In a Geographically large area Master
Franchisee may decide to appoint Regional
Franchisee
Advantage of Franchise
Increase number of outlet with minimum
capital
Name recognition
Running small business under Franchise
name is very beneficial
Big Business help in corporate marketing
Proper and effective marketing tactic