F

franchise Franchisor

ranchising
What is?

Why?

Ho w
?

KAREN DAZ
Historical
background
Freed Persons

om Goods

Govern exem Conse Land

ment
payment pt ssion
s

KAREN DAZ
Historical
background
Issac Singer
the invento
the sewing r of
machine in
1858, is cre
dited with
starting the
modern-day
franchise co
ncept.

KAREN DAZ
 Beer
campany
Beer
campany
Singer
Singer
GM
GM Coca-cola
Coca-cola

KAREN DAZ
What is
franchising?
According to IFA franchise
is defined as a
agreement between two legally independent
parties.

Franchisor Franchisee

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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 franchisors trade
name to produce and/or market
goods and services according to a
format specifiedKAREN
by DAZ
a franchisor.
 How is the
funtion?
Others
Fees
payments
Royalties

Sales

Franchisor FranchiseeIncome
Know how
Operating
system
Support

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Classification

Service franchise
structure
Product franchise
structure

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Classification

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Classification

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Advantage
Business for you-self, but no by your-
self
The franchise has already beenproven successful.
Training is providedand 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 supportin the form of national and
local advertising
Franchisees can expect to getongoing
supportfrom regional representatives
KAREN DAZ
Disadvantage

1. Requires the franchisee to

follow the rules of operation.
2. Franchising is less
entrepreneurial than the stand-
alone business.
3. The entrepreneur loose the
creativity.

KAREN DAZ
 n k
h a o
T u s
o h !
y uc
KAREN DAZ
Bibliography
http://www.franchisedirect.com/information/guidetobuyingafranchise/whatis
franchising/29/190/

BERMUDES Gonzales Guillermo: La franquicia: Elementos relacionados y

estrategias [On line] View in: <
http://books.google.com.co/books?id=kc3etZc7xSwC&printsec=front
cover&dq=franquicia&source=bl&ots=yFLlv1BqJe&sig=kh_ZrD6JnrqumN
WbGQBr0Ic4V2k&hl=en&sa=X&ei=gHZYULC0HMT10gGkxYCoDQ&ved=0CCwQ6AE
wAA#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=front
cover&dq=franchising&source=bl&ots=fvU-RHwm6_&sig=91L9CNuTV-KJiU
ZPrSuGbzNJ1ho&hl=en&sa=X&ei=3npYUKzNIoSm8QSZoYCYBw&sqi=2&ved=0CD
gQ6AEwAw#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=front
KAREN DAZ