What Is Franchising
The General Concept
Franchising is a must abused word and means many different things to different people. In simple terms it is the granting or certain rights by one party (the franchisor) to another (the franchisee) in return for a sum of money. The franchisee then exercises those rights under the guidance of the franchisor. Such a wide definition encompasses many different forms of licensing arrangements and ranges from the right to manufacture denim jeans or soft drinks under a particular brand name to the right to run a local radio station under the auspices of the Independent Broadcasting Authority.
This book has a much narrower focus and is concerned only with business format franchising which can be defined as a contractual license granted by one person (the franchisor) to another (the franchisee) which:
1.Permits or requires the franchisee to carry on a particular business using the franchisor s know-how under the franchisors brand as an independent business;
2.Allows the franchisor to exercise continuing control over the manner in which the franchisee carries on the franchised business;
3.Obliges the franchisor to provide the franchisee with ongoing support in carrying on the franchised business.
As a commercial matter, the agreement inevitably requires the franchisee periodically during period of the franchise to pay to the franchisor sums of money in consideration for the franchise and/or services provided by the franchisor of the franchisee.
In many ways franchising can be as essentially a marketing exercise. The consumers perception should be that, save for any express statement to the contrary, there is no difference between one. The dcor of the shop premises, the livery of vehicles, the selection of the goods or services and uniforms of the staff should be identical to the franchisors own outlets. The franchisor is renting the franchisee the right to use its business format; hence the name business format franchising. However that right to use the business format is for a limited period of time. The format or associated marks. The rights he enjoys are similar to those of a tenant has full enjoyment of the demise, but the day after expiry of the lease he has no rights over the property at all.
The franchisor delivers to the franchisee a business blueprint that has been proven to be successful. The franchisor does not however deliver to the franchisee a guarantee of success. More details Visit This Url- http://www.greatindiafranchise.com
Franchising is a must abused word and means many different things to different people. In simple terms it is the granting or certain rights by one party (the franchisor) to another (the franchisee) in return for a sum of money. The franchisee then exercises those rights under the guidance of the franchisor. Such a wide definition encompasses many different forms of licensing arrangements and ranges from the right to manufacture denim jeans or soft drinks under a particular brand name to the right to run a local radio station under the auspices of the Independent Broadcasting Authority.
This book has a much narrower focus and is concerned only with business format franchising which can be defined as a contractual license granted by one person (the franchisor) to another (the franchisee) which:
1.Permits or requires the franchisee to carry on a particular business using the franchisor s know-how under the franchisors brand as an independent business;
2.Allows the franchisor to exercise continuing control over the manner in which the franchisee carries on the franchised business;
3.Obliges the franchisor to provide the franchisee with ongoing support in carrying on the franchised business.
As a commercial matter, the agreement inevitably requires the franchisee periodically during period of the franchise to pay to the franchisor sums of money in consideration for the franchise and/or services provided by the franchisor of the franchisee.
In many ways franchising can be as essentially a marketing exercise. The consumers perception should be that, save for any express statement to the contrary, there is no difference between one. The dcor of the shop premises, the livery of vehicles, the selection of the goods or services and uniforms of the staff should be identical to the franchisors own outlets. The franchisor is renting the franchisee the right to use its business format; hence the name business format franchising. However that right to use the business format is for a limited period of time. The format or associated marks. The rights he enjoys are similar to those of a tenant has full enjoyment of the demise, but the day after expiry of the lease he has no rights over the property at all.
The franchisor delivers to the franchisee a business blueprint that has been proven to be successful. The franchisor does not however deliver to the franchisee a guarantee of success. More details Visit This Url- http://www.greatindiafranchise.com
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