Franchising and Its Importance
What is Franchising? ď‚— A franchise operation is a contractual relationship between
the franchisor and franchisee in which the franchisor offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas.
Types of Franchising Product distributions franchise Business format franchise Management franchise
Product distributions franchise ď‚— A product distribution franchise model is very much like a
supplier-dealer relationship. ď‚— This franchise is merely sells the franchisor's products. They includes the some form of integrations of the business activates.
Business format franchise ď‚— In this methods, they uses the format of the business
franchise, the integration of the business is more complete. ď‚— The implements the franchisor format and procedure of conduction the business.
Management franchise ď‚— Its also known as services agreements. This franchise is
provides the management expertise, format and/or procedures for conducting the business.
Importance of Franchising
Increase the business images. Ensuring consistent quality Access to good locations Reducing the risk of failure. Economic scale
Why franchising?
Site selection Training Grand opening program Design and constructions financing
Advantages of Franchising
Motivated management Speed of growth Ease of supervision Increased profitability Improved valuations
For Example: ď‚— Speaking Roses is an international company which are
provide the unique, outstanding and fresh flowers in your area. We are received the international award at the recognition 2005 in international Horti Fair Floral show in Holland.