franchise Franchisor

What is?

Why?

How?

Franchising

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Freedom

Consessionexempt

Historical background

Persons

Goods

LandGovernment

payments

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Historical background

Issac Singer the inventor of the sewing machine in 1858, is credited with starting the modern-day franchise concept.  

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Singer

Beer campany

Coca-cola

G M

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What is franchising?According to IFA franchise is defined as a agreement

between two legally independent parties.

FranchiseeFranchisor

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Estrategic essence

The Brand

The Operating System

The Ongoing support

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Returne to franchisor

Fees

Royalties

Other payments

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What is franchising?

“A business from essentially consisting an organization with a market-tested business package centered on a product or service, entering into a continuing contractual relationship with franchisee, typically self financed and independently owner-managed small firms, operating under franchisor’s trade name to produce and/or market goods and services according to a format specified by a franchisor”.

(by Currant and Stanworth, 1983)

How is the funtion?

IncomeFranchisor Franchisee

Know how

Operating systemSupport

RoyaltiesFees

Others payments

Sales

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Classification

Service franchise structure

Product franchise structure

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Classification

Single Unint

Multi Unit

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Classification

Global

Corner

Shop in the shop

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Advantage “Business for you-self, but no by your-

self” The franchise has already been proven successful. Training is provided and greatly accelerates the time to start up a business. The operating system can be learned and then followed to duplicate positive results. Brand name recognition – customers already exist and are loyal to the brand. Location assistance, which can range from finding the right site to sales or rental negotiation. Marketing support in the form of national and local advertising Franchisees can expect to get ongoing support from regional representatives Discounted purchasing of supplies and goods used in the business thanks to the power of group buying.

Disadvantage

3. The entrepreneur loose the creativity.

2. Franchising is less entrepreneurial than the stand-alone business.

1. Requires the franchisee to follow the rules of operation.

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Thank

you so

much!

!!KAREN DÍAZ

Bibliographyhttp://www.franchisedirect.com/information/guidetobuyingafranchise/whatisfranchising/29/190/

•BERMUDES Gonzales Guillermo: La franquicia: Elementos relacionados y estrategias [On line] View in: <http://books.google.com.co/books?id=kc3etZc7xSwC&printsec=frontcover&dq=franquicia&source=bl&ots=yFLlv1BqJe&sig=kh_ZrD6JnrqumNWbGQBr0Ic4V2k&hl=en&sa=X&ei=gHZYULC0HMT10gGkxYCoDQ&ved=0CCwQ6AEwAA#v=onepage&q=franquicia&f=false>

•Hoy Frank: Franchising and international prespective [On Line] View in: < http://books.google.com.co/books?id=Tj-X4X-N_zgC&printsec=frontcover&dq=franchising&source=bl&ots=fvU-RHwm6_&sig=91L9CNuTV-KJiUZPrSuGbzNJ1ho&hl=en&sa=X&ei=3npYUKzNIoSm8QSZoYCYBw&sqi=2&ved=0CDgQ6AEwAw#v=onepage&q=franchising&f=false>

•LLAN Alon: Global franchising operations management: case in franchise, international, and emerging markets operations. [On line] View in: <http://books.google.com.co/books?id=bFSDDIgqnSUC&printsec=frontcover&dq=franchising&source=bl&ots=X4vu2zdyI2&sig=1XnQnRfnjYkwM0dL0BMwSCM-Aak&hl=en&sa=X&ei=3npYUKzNIoSm8QSZoYCYBw&sqi=2&ved=0CEcQ6AEwBQ#v=onepage&q=franchising&f=false >

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