FRANCHISING

Jessica MartínezJhoanna Medina

What is Franchising ?

A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration.

Which are types of franchising?

There are several types of classification franchises to keep in mind when trying to acquire a business with prestige, since everything depends on the item to which you want to spend. Here are some variations:

• Commercial Franchise• Industrial Franchise• Distribution franchise• Service Franchise

FRANCHISING ACTORS

• FRANCHISOR• FRANCHISEE

FRANCHISOR

A franchisor is a person who grants a franchise to a franchisee. A franchisor also has the right to administer continuous control during the franchise term over the franchise business operation.

The assets and value that a "franchisor" brings to the "franchising table", includes or, at least, should include:

• Proven business model

• Recognized Trademark and Brand 

• Established Business Systems 

• Training and Support 

FRANCHISEE

A franchise is a right granted to an individual or group to market a company's goods or services within a certain territory or location. Some examples of today's popular franchises are McDonald's, Subway, Domino's Pizza, and the UPS Store

ADVANTAGES OF BUYING A FRANCHISE

There are many advantages to buying a franchise. Some of these advantages are:

• Corporate image • Training • Savings in time

WHAT ARE THE ADVANTAGES OF FRANCHISING?

 • About 91% of all franchisees reported

profitability over the last 12 months.• The business format is proven.• You have the opportunity to build your capital

as well as your earnings.• It is your business and you are the owner

manager, providing you follow the system, you decide what goes.

• The major banks are very supportive of good franchising.

WHAT ARE THE DISADVANTAGES OF

FRANCHISING?

• Running any business is hard work, demanding the highest level of personal and family commitment.

• You make a financial investment, however, no investment is guaranteed, especially when it depends on the efforts of both you and your franchisor as well as the vagaries of the market place.

• You buy into a proven business system for its benefits but you also take on the responsibility for following it – not doing so may result in you losing the business. 

MAJOR FRINCHISING IN THE WORLD

• Subway (sandwiches and salads)• McDonald’s• 7-eleven Inc.• Hampton Inns and suites (Midprice hotels)• Great clips (Hair salons)• H&R block (Tax preparate and now filing) • Dunkin’ Donuts

BIBLIOGRAPHY

• http://www.entrepreneur.com/encyclopedia/franchising• http://www.soyentrepreneur.com/los-principales-tipos-de-franq

uicias.html

• http://franchises.about.com/od/franchisebasics/a/what-franchises.htm

• http://www.thebfa.org/join-a-franchise/advantages-and-disadvantages-of-franchising

• http://www.franchiselawsolutions.com/library/franchisor-vs-franchisee-new-york-business-and-franchise-lawyer.cfm