- "Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion."
A franchisor provides the franchisee with a proven business system, including training and ongoing support. Business format franchising is the most common type of franchise.
Franchise basics: This includes the definition of franchise, its history, types of franchise, and how it works.
Franchise ownership: This topic includes information on what it takes to become a franchisee, requirements, and qualifications.
Franchise fees and costs: This topic covers the different types of franchise fees, including initial fees, ongoing royalties, and advertising fees, as well as other costs such as training costs and marketing fees.
Franchise legal considerations: This includes the legal requirements for buying a franchise, the details of the franchise agreement, and related legal issues.
Financing and funding: This topic covers the different options available for financing a franchise, including loans, grants, and other funding sources.
Franchising industry trends: This topic provides information on the latest trends and developments in the franchising industry, including new types of franchises and changing regulations.
Marketing and advertising: This topic covers the different marketing and advertising strategies that franchisors use to promote their products and services.
Operations and management: This topic includes information on how franchises are managed and operated, including details on training, support, and ongoing management.
Franchise research and due diligence: This covers the process of researching and evaluating various franchises, including their financial records, reputation, and other factors.
Franchise expansion and growth: This topic covers how franchises can expand their operations, including strategies for opening new locations and growing the brand.
Product or Trade Name Franchise: The franchisor allows the use of its products, name and trademark for the licensee to sell a product or service in a particular territory.
Management Franchise: The franchisor provides a license to operate a business using its proven system, operating procedures, and business methods. The franchisee then hires the staff and manages the day-to-day operations.
Professional Franchise: This format is most common in the legal or accounting field. Under this franchise format, a franchisee operates a professional practice under the franchisor's brand name.
Distribution Franchise: The franchisor allows the franchisee to distribute its products in a specified area. The franchisee must buy and sell the products, but typically the franchisor takes care of advertising and marketing.
Area Development Franchise: Under this format, the franchisor grants the franchisee the right to open, operate and manage a certain number of franchise units within a specific geographic region.
Conversion Franchise: This franchise format is used in independent businesses. Here, the franchisor offers its proven business model and systems to an established business to improve its operations, marketing and overall brand identity.
Joint Venture Franchise: This franchise format is a partnership between a franchisor and a franchisee. The franchisee invests in a business and the franchisor provides its business model, brand name and support.
Company-owned Outlet Franchise: In this type, a franchisor owns and operates an outlet, which it then licenses to a franchisee to run.
Co-operative Franchise: Here franchisees, collectively form an organization, which in turn operates and succeeds with the help of pooled resources, shared profits and collective partnerships.
- "A franchisor licenses some or all of its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee."
- "The franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a franchise agreement."
- "Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchisor's capital investment and liability risk."
- "Franchising is rarely an equal partnership, especially in the typical arrangement where the franchisee is an individual, unincorporated partnership or small privately-held corporation, as this will ensure the franchisor has substantial legal and/or economic advantages over the franchisee."
- "The usual exception to this rule is when the prospective franchisee is also a powerful corporate entity controlling a highly lucrative location and/or captive market."
- "Under specific circumstances like transparency, favorable legal conditions, financial means, and proper market research, franchising can be a vehicle of success for both a large franchisor and a small franchisee."
- "Thirty-six countries have laws that explicitly regulate franchising."
- "The majority of all other countries have laws which have a direct or indirect effect on franchising."
- "The word franchise is of Anglo-French derivation—from franc, meaning 'free'—and is used both as a noun and as a (transitive) verb."
- "For the franchisor, use of a franchise system is an alternative business growth strategy, compared to expansion through corporate owned outlets or 'chain stores'."
- "The franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a franchise agreement."
- "Franchising is also used as a foreign market entry mode."
- "A franchisor licenses some or all of its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee."
- "Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchisor's capital investment and liability risk."
- "This will ensure the franchisor has substantial legal and/or economic advantages over the franchisee."
- "Transparency, favorable legal conditions, financial means, and proper market research are specific circumstances that can lead to successful franchising."
- "Franchising is rarely an equal partnership, especially in the typical arrangement where the franchisee is an individual, unincorporated partnership or small privately-held corporation, as this will ensure the franchisor has substantial legal and/or economic advantages over the franchisee."
- "Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchisor's capital investment and liability risk."
- "Prospective franchisors must then compete to exclude one another."