Lecture 3COMMON FRANCHISE TERMS
Lecture 3COMMON FRANCHISE TERMS
FRANCHIS
E TERMS
business format franchise – this type of franchise
includes not only a product, service and trademark, but
also the complete method to conduct the business itself,
such as the marketing plan and operations manuals
WHAT ARE
THE
ALTERNATI ✔ distributorships
VES TO
FRANCHISI
NG?
✔ licensing
In a distributorship, the distributor usually:
• has a contractual relationship with the supplier
• buys from the supplier in bulk and sells in smaller
quantities
✔ management’s
✔ the company’s key expérience in
✔ the franchisor
staff franchise
management
franchise etc.
✔ term (duration) of the franchise
agreement ✔ payments made by the
franchisee to the franchisor
may include ✔ termination and/or the right to
specifics transfer the franchise