FRANCHISEE
A franchisee may be a little business
owner that purchases the correct to use
Associate in Nursing existing business's
emblems, associated brands, and
alternative proprietary data. In addition
to paying Associate in Nursing annual
franchising fee to the underlying
company, the franchisee should
additionally pay a little of its profits to the
franchisor.
FRANCHISE
A franchise may be a style of license that a
celebration (franchisee) acquires to
permit them to possess access to a
business's (the franchiser) proprietary
data, processes, and emblems so as to
allow the party to sell a product or offer a
service underneath the business's name.
In exchange for gaining the franchise, the
franchisee sometimes pays the franchisor
Associate in Nursing initial start-up and
annual licensing fees.
ROLE OF FRANCHISE
The franchisor provides overall support
and resources to assist franchise partners
succeed; franchisees area unit still
chargeable for managing their business
and guaranteeing its growth.
Taking possession of a franchise business
is that the sole responsibility of the
franchise partner.
PURPOSE OF FRANCHISE
It provides wider shops for merchandise
and services; It allows the franchisor to
service national customers victimization
their network of shops.
ADVANTAGES OF FRANCHISE
Franchising reduces the risk of business
failure. Your business is based on a
proven idea. You can check however
fortunate alternative franchises area unit
before committing yourself.
Products and services will have already
established a market share. Therefore
there'll be no would like for market
testing.
You can use a recognized brand name and
trademark. You get pleasure from any
advertising or promotion by the owner of
the franchise - the 'franchisor'
DISADVANTAGES OF FRANCHISE
The franchisor provides overall support
and resources to assist franchise partners
succeed; franchisees area unit still
chargeable for managing their business
and guaranteeing its growth.
Taking possession of a franchise business
is that the sole responsibility of the
franchise partner.
The franchisor might go out of business.
FRANCHISOR
The company that permits a private to
run a location of their business.
The franchisor owns the overarching
company, trademarks, and products, but
gives the right to the franchisee to run the
franchise location, in return for an
agreed-upon fee. Fast-food companies are
often franchised.
ROLE OF FRANCHISOR
Successful franchisors share some
common attributes: they're driven to
share their expertise and power with
their franchisees. They provide their
franchisees with the tools required to
work their businesses to complete
standards. They are centered on making
certain that every franchisee operates to
system standards.
PURPOSE OF FRANCHISOR
It provides wider retailers for
merchandise and services; It allows the
franchisor to service national customers
exploitation their network of retailers.
Franchising is Associate in Nursing
exciting promoting method; once it's
properly structured and well run it
provides advantages and satisfaction for
each parties.
ADVANTAGES OF FRANCHISOR
Regular flow of income from franchisees.
Risk shared with franchisees.
Expansion paid for by franchisees.
DISADVANTAGES OF FRANCHISOR
Reputation may be adversely affected by
franchisees.
Can be expensive to monitor franchisees.
RELATIONSHIP BETWEEN FRANCHISE
AND FRANCHISOR
A franchise may be a account ruled by a
contract or franchise agreement. The
franchisor owns the trademark(s) and
therefore the OS for the franchise. The
franchisee is accredited to use each the
trademark and therefore the OS in line
with the terms and conditions set forth
within the franchise agreement. Both the
franchisor and franchisee should fulfill
their obligations underneath the contract.
CONCLUSION
Although the franchisees own their
businesses, they have to operate them in
accordance with binding guidelines
provided by the franchisor. ...Franchising
is not for them.
