Franchising
Franchising
Produces the
syrup
concentrate
Sells the syrup
concentrate
FRANCHISEE
Retail Stores
Restaurants & F&B
Outlets
Vending Machine
Operators
outlet in
Sale, Australia
outlet in
Marseille, France
1)
2)
Advertising Programs
5) Fianancial Assistance
support the prospective franchisees
6) Proven Products and Business
Formats
franchise owner dont have to build
business from scratch
7) Centralized Buying Power
- participation in the franchisers
centralized and large-volume buying
power
8) Site Selection and Territorial
Protection
- location is critical to success
DRAWBACKS OF BUYING A
FRANCHISE
When
or method of business
2.2)Greater assistance, control and
longer duration
3.3)Distributor
merely
re-sells
products to retailers or customers
Developing franchise
concept
Market research
Familiarity with local laws
and regulations
Providing training and
support to franchisees
Demand
Profitability of franchise, and
length of time required to
recoup investment
Track record of franchisor
Support rendered to other
franchisees
ELEMENTS
FRANCHISER
FRANCHISEE
APPROVES;MAY
CHOOSE SITE
CHOOSES SITE
WITH
FRANCHISERS
APPROVAL
SITE
SITE
SELECTION
SELECTION
OVERSEES AND
EMPLOYEES
MAKES GENERAL
RECOMMENDATION
S AND TRAINING
SUGGESTIONS
HIRES,MANAGES
AND FIRES
EMPLOYEES
PRODUCTS AND
SERVICES
DETERMINES
PRODUCT OR
SERVICE LINE
MODIFIES ONLY
WITH
FRANCHISERS
APPROVAL
PRICES
CAN ONLY
RECOMMEND
PRICES