- "Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion."
In this type of franchise, the franchisor manages the daily operations of the business, while the franchisee holds ownership rights.
Franchise Models: A franchise model is a business format in which an established company provides a proven business model to a franchisee who pays a fee to use the model and operate a franchised business.
Marketing and Advertising: Understanding marketing and advertising strategies for a franchise business is crucial to ensure its success. Key topics include branding, target markets, reaching potential customers, and online advertising.
Financial Management: The financial aspects of running a franchise business can be overwhelming. Topics include understanding financial statements, creating a budget, forecasting, taxes, and managing cash flow.
Franchise Agreements: Franchise agreements are legal documents that outline the terms and conditions of the franchise relationship, including franchise fees, royalty rates, obligations of both parties, and franchisor support.
Operations Management: Operations management involves overseeing the processes that help a franchise run smoothly, such as human resources, production, inventory management, and customer service.
Legal Issues: Understanding the legal aspects of running a franchise business is essential to protect the franchisee's interests. Topics include complying with laws and regulations, drafting contracts, resolving disputes, and protecting intellectual property.
Training and Support: Franchisors offer training and support to franchisees to help them operate the franchise business effectively. Topics include initial training, ongoing support, marketing support, and franchisee-to-franchisee networking opportunities.
Site Selection and Real Estate: Selecting the right location for a franchise business can have a significant impact on its success. Topics include site selection criteria, lease negotiations, and real estate law.
Franchisee-Franchisor Relationship: The relationship between franchisee and franchisor is crucial to the success of the franchise business. Topics include communication, conflict resolution, compliance with franchisor standards, and balancing franchisor support with independence.
Industry-Specific Issues: Different industries have specific issues that franchise businesses need to address. Topics include food safety regulations, healthcare compliance, and retail trends.
Single-unit franchise management: This is the most common type of franchise management where the franchisee operates a single unit of a franchised business.
Multi-unit franchise management: In this type of management, the franchisee operates multiple units of the franchised business in different locations.
Area franchise management: In Area Franchise Management, a franchisee has the right to develop and operate a certain number of units within a specified geographic area.
Master franchise management: A master franchisee has the right to develop and operate the franchised business in a specified geographic area and also has the authority to grant sub-franchises.
Co-operative franchise management: In this type of franchise management, several franchisees pool their resources to create a cooperative that operates the franchised business.
Conversion franchise management: This type of franchise management occurs when a non-franchised business decides to convert to a franchise system.
Mini-franchise management: Mini-franchise opportunities represent a scaled-down version of a traditional franchise that can be established with lower investment requirements.
Home-based franchise management: In this type of management, franchisees operate the franchised business from their homes or other flexible settings outside of a traditional office.
Online franchise management: Online franchise opportunities exist in which franchisees operate a business entirely online, without a brick-and-mortar presence.
Social franchise management: In this type of management, a social enterprise is franchised, allowing social enterprises to become more scalable and sustainable.
- "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."