SUPRIYA will introduce

Every1 then ill start…she’ll cum bak for NUTRITION PART

(VIBHA)Franchising is the practice of using another person's business model. The word
franchise is of anglo-french derivation -from franc- is used both as a noun and as a (transitive)
verb. A franchise is an agreement between a franchisor and the recipient "franchisee". There are
two important elements for which payments are made to a franchisor - the trade-mark, which
distinguishes the franchisor, and training imparted to the franchisee. The franchisor receives a
royalty for the trade-mark and a fee for training and advice. The franchise is usually for a fixed
period and is given for a "territory". It may be an exclusive franchise or non-exclusive. Various
tangibles and intangibles such as national or international advertising, training, and other support
services are commonly made available by the franchisor. Agreements typically last from five to
thirty years, with premature cancellations or terminations of most contracts bearing serious
consequences for franchisees.

Franchising has been around for many centuries but did not come to prominence until the 1930s
in the United States,.According to the International Franchise Association approximately 4% of
all businesses in the United States are franchises.

Businesses for which franchising is said to work best have the following characteristics:

• Businesses with a good track record of profitability.

• Businesses which are easily duplicated.

Advantages

For franchisors
Expansion

Franchising is one of the only means available to access venture investment capital without the
need to give up control of the operation of the chain in the process. it reduces risk increases
profit.

Legal considerations to consider

The franchisor is relieved of many of the mundane duties necessary to start a new outlet, such as
obtaining the necessary licenses and permits. In some jurisdictions, certain permits (especially
alcohol licenses) are more easily obtained by locally based., franchisors are generally protected
from lawsuits from their franchisee because of the non-negotiable contracts that require
franchisees to acknowledge.

Operational considerations
Franchisees are said to have a greater incentive than direct employees to operate their businesses
successfully because they have a direct stake in the start up of the branded business . The need of
franchisors to closely scrutinize the day to day operations of franchisees (compared to directly-
owned outlets) is greatly reduced.

Franchisors can maximize their profits on the gross sales of the franchisees and avoid the
operational expenses for the physical units that wear their brand names.

For franchisees

Employment

Opening a franchise is a way of owning a business.

Quick start

franchising offers franchisees the advantage of starting up a new business quickly based on a
proven trademark and formula of doing business, as opposed to having to build a new business
and brand from scratch (often in the face of aggressive competition from franchise operators). A
well run franchise would offer a turnkey business: from site selection to lease negotiation,
training, mentoring and ongoing support as well as statutory requirements and troubleshooting.

Expansion

With the help of the expertise provided by the franchisors, the franchisees may be able to take
their franchised businesses to a level which they wouldn't have been able to without the expert
guidance of their franchisors.

Training

Franchisors often offer franchisees significant training, which is not available for free to
individuals starting their own business. Although training is not always free for franchisees, it is
sometimes supported through the traditional franchise fee are deductible as part of the startup
expenses of the business.

Many franchisors nowadays also have an online Corporate University to help franchisees with
both initial and ongoing training. An online Corporate University has the advantage of enabling
anytime, anywhere learning and is generally made available free of charge to the franchisee.

Disadvantages

For franchisors
Control
Incompetent franchisees can easily damage the public's goodwill towards the franchisor's brand
by providing inferior goods and services. If a franchisee is cited for legal violations, (s)he will
probably face the legal consequences alone but the franchisor's reputation could still be damaged.

For franchisees

No guarantee

Usually, there is no guarantee of financial success for the franchisee made by the franchisor in
the written disclosure circular and the actual franchise agreement.

Control

For franchisees, the main disadvantage of franchising is a loss of control. While they gain the use
of a system, trademarks, assistance, training, marketing, the franchisee is required to follow the
system and get approval for changes from the franchisor. In other words, he is "renting or
leasing" the opportunity, not "buying a business for the purpose of true ownership."

Price

Starting and operating a franchise business carries expenses. In choosing to adopt the standards
set by the franchisor, the franchisee often has no further choice as to signage, shop fitting,
uniforms etc. The franchisee may not be allowed to source less expensive alternatives. Added to
that is the franchise fee and ongoing royalties and advertising contributions. The contract may
also bind the franchisee to such alterations as demanded by the franchisor from time to time.

Conflicts

The franchisor/franchisee relationship can easily cause conflict if either side is incompetent (or
acting in bad faith). An incompetent franchisor can destroy its franchisees by failing to promote
the brand properly or by squeezing them too aggressively for profits. Franchise agreements are
unilateral contracts or contracts of adhesion wherein the contract terms generally are
advantageous to the franchisor when there is conflict in the relationship.

As a franchisee, you have little legal recourse if you're wronged by the franchisor. Most
“ franchisors make franchisees sign agreements waiving their rights under federal and state
law, and in some cases allowing the franchisor to choose where and under what law any
dispute would be litigated. Shamefully, the Federal Trade Commission (FTC) investigates
only a small minority of the franchise-related complaints it receives.

Examples

1. 7-ELEVEN INC.
2. SUBWAY
3. DUNKIN’ DONUTS
 4. PIZZA HUT
5. MCDONALD’S

THE EXAMPLE WE’VE TAKEN IS PIZZA HUT. (GOMATI)

Pizza Hut is an American restaurant chain and international franchise based in Addison, Texas(a
northern suburb of Dallas), offering different styles of pizza along with side dishes including
pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands,
Inc., the world's largest restaurant company,[2] with approximately 34,000 restaurants, delivery-
carry out units, and kiosks in 100 countries.

The company is relocating its headquarters to Legacy Office Park in nearby Plano when the lease
on its current building, which it has occupied since 1995, expires at the end of 2010.

Concept and format

Pizza Hut is split into several different restaurant formats; the original family-style dine-in
locations ("Red Roofs"); store front delivery and carry-out locations ("Delcos"); and hybrid
locations that offer carry-out, delivery, and dine-in options ("RBDs" or Restaurant Based
Delivery units). Many full-size Pizza Hut locations offer lunch buffet, with "all-you-can-eat"
pizza, salad, breadsticks, and a special pasta. Additionally, Pizza Hut also has a number of other
business concepts that are different from the store type; Pizza Hut "Bistro" locations are Red
Roofs which offer an expanded menu and slightly more upscale options.

Finally, "Pizza Hut Express" and "The Hut" locations are fast food restaurants. They offer a
limited menu with many products not found at traditional Pizza Huts. These type of stores are
often paired in a colocated location with a sibling brand such as Wing Street, KFC or Taco Bell,
and are also found on college campuses, food courts, theme parks, and in stores such as Target.

History

The chain was founded in 1958 by dan and frank carney. They chose the name "pizza hut" since
the sign they purchased only had enough space for nine characters and spaces.additional
restaurants were opened, with the first FRANCHISE unit opening in 1959 in TOPEKA,
KANSAS. to overcome competition from SHAKEY'S PIZZA they decided to stick with the
neighborhood business and realized that they needed to have a good standard image. the carney
brothers contacted wichita architect richard d. burke, who designed the distinctive mansard roof
shape and standardized layout, hoping to counter the competition from shakey's. The franchise
network continued to grow through friends and business associates, and by 1964 a unique
standardized building appearance and layout was established for franchised and company-owned
stores, creating a universal look that customers easily recognized.
By 1972, with 314 stores nationwide, Pizza Hut went public on the New York Stock Exchange
under the stock ticker symbol PIZ. In 1978, Pizza Hut was acquired by Pepsico, who later also
bought KFC and Taco Bell. In 1997, the three restaurant chains were spun off into Tricon, and in
2001 joined with Long John Silver's and A&W Restaurants to become Yum! Brands. The oldest
continuously operating Pizza Hut in the world is in Manhattan, Kansas, in a shopping and tavern
district known as Aggieville near Kansas State University.

Products( christiel)

Pizza Hut's prototype version of a restaurant (1950–1961). This was only used at four prototype
Pizza Hut locations. There are only a few menu items on this version.

The plaque on the first Pizza Hut building which was sometimes seen on the box. It was shown
from 1970 to 1985.

Pizza Hut sells pizzas in four different sizes: personal (individual serving), small, medium and
large, though most stores have done away with the small size. A variety of toppings are
available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers,
Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly introduced Pizza
Mia. The pan pizza has a thicker crust than most other commercially available pizzas.

Pizza Hut also sells Stuffed Crust pizza, with the outermost edge wrapped around a coil of
mozzarella cheese; Hand-Tossed, more like traditional pizzeria crusts; Thin 'N Crispy, a thin,
crispy dough which was Pizza Hut's original style; Dippin' Strips pizza, a pizza cut into small
strips that can be dipped into a number of sauces; and The Edge pizza, where the toppings nearly
reach to the edge of the pizza. There was also formerly a crust that was not as thick as Pizza
Hut's pan pizza, and not as thin as its thin crust. This crust was used on the Full House XL pizza
and discontinued in 2007.[8]

Pizza Hut experiments with new products frequently, with less successful ones being
discontinued. These include the initially popular two-foot by one-foot square cut pizza Bigfoot,
the 16" Big New Yorker, made with a sweet sauce, the Chicago Dish Pizza and Sicilian pizza,
the latter also offered in 2006 as Lasagna Pizza. Other products Pizza Hut has offered are the
"P'zone", Pizza Hut's version of the calzone; the Cheesy Bites pizza, similar to the Stuffed Crust
pizza except the crust has been divided into 28 bite-sized pieces that can be pulled apart; and the
Insider pizza, where a layer of cheese is in between two layers of dough. Another limited time
offer was a Double Deep pizza with double the toppings and 50% more cheese, with the crust
wrapped over the top to hold in all the toppings. In 1985 Pizza Hut introduced the Priazzo[9], a
two-crusted Italian pie that resembled a deep-dish pizza. Varieties included Priazzo Milano, a
blend of Italian sausage, pepperoni, beef, pork fillings, a hint of bacon, mozzarella and cheddar
cheese; Priazzo Florentine, a light blend of five cheeses with ham and a touch of spinach, and
Priazzo Roma, stuffed with pepperoni, mushrooms, Italian sausage, pork filling, onions,
mozzarella and cheddar cheese. The double-crusted pie was topped with a layer of tomato sauce
and melted cheese. The Priazzo was introduced by a $15 million advertising campaign, but
proved too labor-intensive and was removed from the menu several years later.

Buffalo wings

In addition to pizza, also sold is garlic cheese bread (not in all locations), plus a number of side
dishes including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings,
chicken wings (some stores have integrated with another chain known as WingStreet which
offers a wide variety, such as Buffalo Burning Hot, Buffalo Medium, Buffalo Mild, Honey BBQ,
Spicy BBQ, Garlic Parmesan, Cajun, Spicy Asian) boneless wings, chicken munchers, jalapeño
poppers, Quepapas (potato bites filled with cheese and jalapeño flavor), a basket of taters or tater
tots and fried apple pies.

Depending on the individual restaurant size, Pizza Huts also may offer pasta dinners such as
spaghetti and Cavatini – a mixture of Cavatelli (shells), Rotini (spirals), and Rotelle (wheels).

A new, upscale concept was unveiled in 2004, called "Pizza Hut Italian Bistro". Unveiled at fifty
locations nationwide, the Bistro is similar to a traditional Pizza Hut, except that new, Italian
themed dishes are offered, such as penne pasta, chicken pomodoro, toasted sandwiches and other
foods. Instead of black, white, and red, Bistro locations feature a burgundy and tan motif. Pizza
Hut Bistros still serve the chain's traditional pizzas and sides as well. In some cases, Pizza Hut
has replaced a "Red Roof" location with the new concept.

A new version of Pizza Hut pizza, named Pizza Mia which is lightly cooked and topped, was
introduced in 2007. The product is aimed at the cost sensitive consumer segment and is priced
similarly to the Domino's 555 deal, where each pizza is priced at five dollars if purchased in bulk
of three or more. In comparison, a Pizza Hut medium sized, hand-tossed pepperoni pizza is
internationally priced at $10.24 (Dallas, Texas 1/1/2009). The Pizza Mia comes in only one size
(medium) and extra toppings range from $1.25 to $1.49. One slice of Pizza Hut pepperoni Pizza
Mia weighs 83 grams, while one slice of Pizza Hut pepperoni hand-tossed pizza weighs
96 grams.[15]

Pizza Hut on May 9, 2008, created and sold in Seattle, Denver, and Dallas, “The Natural”, a new
all-natural multi grain crust sweetened with honey, a red sauce of organic tomatoes and topped
all-natural cheese (or with all-natural chicken sausage and roasted red peppers). A medium
Natural pizza with one topping sold for $9.99. This was discontinued on October 27, 2009 in the
Dallas market.[16] It has since launched a nationwide advertising campaign. Also in 2008, Pizza
Hut created their biggest pizza ever, the Panormous Pizza. It has 16 pieces.

Pizza Hut introduced the Big Eat Tiny Price Menu on June 21, 2009. It features new Pizza Rolls,
the P'Zone Pizza, new Personal Panormous Pizza, and the Pizza Mia Pizza, each item starting at
$5.00 or $5.99.
Pizza Hut introduced stuffed pan pizza on August 23, 2009 with $10.99 for one toppings and
specialty for $13.99. Unlike regular stuffed crust cheese is not inside the crust, just pressed into
the pan crust.

Advertising

Old in-restaurant ad for Pizza Hut's Pan Pizza. (deepika)

Pizza Hut's very first ad was "Putt Putt to Pizza Hut". It starts with a man apparently ordering
take-out and driving his 1965 Mustang JR to Pizza Hut, while some of the townspeople start
chasing him. He picks up his pizza and goes to his house, when all of the people who were
chasing him start eating all the pizza except the man who ordered it. Frustrated, he calls Pizza
Hut again.

Until early 2007, Pizza Hut's main advertising slogan was "Gather 'round the good stuff", and is
currently "Now You're Eating!". Pizza Hut does not have an official international mascot, but at
one time, there were commercials in the United States called 'The Pizza Head Show.' These
commercials ran from 1993 to 1997 and were based loosely on the Mr. Bill shorts from Saturday
Night Live in the 1970s. The ads featured a slice of pizza with a face made out of toppings called
'Pizza Head'. In the 1970s Pizza Hut used the signature red roof with a jolly man named "Pizza
Hut Pete". Pete was on the bags, cups, balloons and hand puppets for the kids. In Australia
during the Mid to late 1990s, the advertising mascot was a delivery boy named Dougie, with
boyish good looks who, upon delivering pizza to his father, would hear the catchphrase "Here's a
tip: be good to your mother".

Pizza Hut sponsored the 1989 film Back to the Future Part II, and offered a free pair of futuristic
sunglasses, known as "Solar Shades", with the purchase of Pizza Hut pizza. Pizza Hut also
engaged in product placement within the film itself, having a futuristic version of their logo with
their trademarked red hut printed on the side of a mylar dehydrated pizza wrapper in the McFly
family dinner scene, and appear on a storefront in Hill Valley in the year 2015.[17]

The 1990 NES game Teenage Mutant Ninja Turtles II: The Arcade Game, came with a coupon
for a free pizza. The game was filled with Pizza Hut advertising and pizza that would refill the
character's life.

In 1994, Donald Trump and ex-wife Ivana Trump starred in a commercial. The ending of the
commercial showed Ivana Trump asking for the last slice, to which Donald replied, "Actually
dear, you're only entitled to half", a play on the couple's recent divorce.

In 1995, Ringo Starr starred in a Pizza Hut commercial which also featured The Monkees. Rush
Limbaugh also starred in a Pizza Hut commercial the same year, where he boasts that "nobody is
more right than me," yet he states that for the first time he will do something wrong, which was
to participate in Pizza Hut's then "eating pizza crust first" campaign regarding their stuffed crust
pizzas.
Talk show host Jonathan Ross, co-starred in an ad with American model, Caprice Bourret. They
were used to advertise the stuffed crust pizza, with Jonathan Ross saying "Stuffed Cwust", to
which is a play on Jonathan's pronunciation of 'R's.

Another UK ad shows British Formula One driver Damon Hill visit a Pizza Hut restaurant and
order a pizza, with famous F1 commentator Murray Walker visiting with him, and narrating as
though it was a Formula One race. As Hill is about to finish his meal, Walker, in a play on Hill's
1994 & 1995 seasons where he was runner up in the Formula One World Championship both
won by Michael Schumacher, shouts "And Hill finishes second, again!" at which Hill grabs
Walker by his shirt and shakes him angrily, Walker proclaiming, in his usual tones, "He's lost it!
He's out of control!"

Following England's defeat to Germany on penalties in the semi-finals of Euro 96, Gareth
Southgate, Stuart Pearce and Chris Waddle featured in an advert. The advert shows Southgate
wearing a paper bag over his head in shame as he was the one, who missed the crucial penalty
against the Germans. Waddle and Pearce, who both missed penalty kicks in Italia 90 are
ridiculing him, emphasising the word 'miss' at every opportunity. After Southgate finishes his
pizza he takes off his paper bag, heads for the door and bangs his head against the wall. Pearce
responds with, "this time he's hit the post".

In 1997, former Soviet Union Premier Mikhail Gorbachev starred in a Pizza Hut commercial to
raise money for the Perestroyka Archives. In recent years, Pizza Hut has had various celebrity
spokespeople, including Jessica Simpson, the Muppets, and Damon Hill and Murray Walker.
Recent commercials have Queen Latifah providing the voiceover. Also in 1997, Pizza Hut,
reunited "greatest of all time boxer" Muhammad Ali with trainer Angelo Dundee in a sentimental
made for Super Bowl commercial.

Pizza Hut sponsored the first space pizza delivery in 2001, and paid for their logo to appear on a
Russian Proton rocket in 2000.[18]

In Australia, 2006 saw the introduction of a mascot in Pizza Hut's advertising – "Pizza Mutt", a
small dog who delivers pizzas. The mascot was dumped after just two ads.

Early 2007 saw Pizza Hut move into several more interactive ways of marketing to the
consumer. Utilizing mobile phone SMS technology and their MyHut ordering site, they aired
several television commercials (commencing just before the Super Bowl) containing hidden
words that viewers could type into their phones to receive coupons. Other innovative efforts
included their "MySpace Ted" campaign, which took advantage of the popularity of social
networking, and the burgeoning user-submission marketing movement via their Vice President
of Pizza contest.

Pizza Hut is also advertised in anime such as Code Geass, Maria-sama ga Miteru, Darker Than
Black and Toaru Kagaku no Railgun, though in the translated versions of Code Geass the logo
was removed, leaving only the red roof logo.
As of October 2009, Pizza Hut is now advertising its WingStreet brand on a nationwide basis,
having met its internal requirement of 80% of stores having the product available (both corporate
and franchised).

Pasta Hut (DISHA)

PASTA HUT LOGO (2008–PRESENT)

On April 1, 2008, Pizza Hut in America sent emails to customers advertising that they now offer
pasta items on their menu. The email (and similar advertising on the company's website) stated
"Pasta so good we've changed our name to 'Pasta Hut'." The name change was a publicity stunt
held in conjunction with April Fools' Day, extending through the month of April, with the
company's Dallas headquarters changing its exterior logo to Pasta Hut.[19] This name change was
also used to promote the new Tuscani Pasta line and new Pizza Hut dine-in menu. The first Pasta
Hut advertisement has the original Pizza Hut restaurant being imploded and recreated, but when
they construct the new building, the sign saying "Pasta Hut" is placed on the building.

Australia

On January 19, 2009, Pizza Hut started a six-week online vote in Australia as to whether Pizza
Hut should become Pasta Hut. They are also co-branding two stores with the Pasta Hut logo.
Advertising for the new brand involved the production team creating a set of a restaurant called
"Toscani's". As the TV suggests, the diners in the fictional restaurant, complete with signage and
secret recording equipment; the customers were unaware they were eating pasta from Pizza Hut.
[20]

United Kingdom

In the United Kingdom on January 19, 2009, Pizza Hut had announced that the Pasta Hut trial
had ended and that the names of all stores previously converted to Pasta Hut would be converted
back to Pizza Hut. This was due to Pizza Hut's online poll, where the results showed that 81%
had chosen to keep the name Pizza Hut, 19% chose to change the name to Pasta Hut.
Consequently the name will change back, but the menus will continue to include pasta.[21]

Costa Rica

In Costa Rica, Aside from the Pizza Hut restaurants, there is another brand called "PHD Pizza
Delivered Hot by Pizza Hut", this brand is only for food courts at malls and for express delivery.
This was created to compete on the "fast food" market while restaurants will concentrate in
casual food.

Nutrition (SUPRIYA)

At Pizza Hut, we take great pride and care to provide you with the best food and dining
experience in the quick-service restaurant business.
When it comes to diet and nutrition, we believe eating sensibly, combined with appropriate
exercise, is the best solution for a balanced lifestyle. Fitness and nutrition are the cornerstones of
living the life you want. To help you further, we've provided here useful links to Pizza Hut
nutritional information so you can make informed choices about what to eat when you choose
from the Pizza Hut menu.
Pizza can be part of a well-balanced meal. Ingredients in our pizzas include protein, complex
carbohydrates, Vitamin A and calcium. And, depending on the toppings you choose, our pizzas
have items from all of the four major food groups - meat, dairy, fruits and vegetables. We even
have a multigrain pizza! So take a closer look within our menu for suggestions when counting
calories and fat grams.

In the UK, Pizza Hut has been criticized for the high salt content of its meals, some of which
were found to contain more than twice the daily recommended amount of salt for an adult. The
meats that consumers demand for pizza toppings (pepperoni, sausage, bacon, etc.) are, likewise,
salty and fatty meats. There have also been concerns raised over food production practices as due
to the high level of frozen produce being used the end products are often cold & of poor quality,
lacking nutritional value.

Nutritional values not applicable to Pizza Hut products in Hawaii.

Substitutions of ingredients may alter nutritional values. Menu items and hours of availability
may vary at participating locations. Although this data is based on standard portion product
guidelines, variations can be expected due to seasonal influences, minor differences in product
assembly per restaurant and other factors. Some menu items may not be available at all Pizza
Hut restaurants, and certain locations may at times offer buffet items, test products, limited-time
offerings or other regional menu choices not listed here. Product data is based on current
formulations as of date of posting.

Headquarters(RIDDHI)

Pizza Hut's headquarters are located in Addison, Texas. Its lease for the headquarters will be
over in 2010. In 2009 Pizza Hut stated that it will consider moving its headquarters to the Legacy
Business Park in western Plano, Texas in 2010. If the move occurs, it will happen in 2010 and
involve the over 500 employees that work in the current Addison headquarters. In 2010 Pizza
Hut announced that it was going forward with the move.

Pizza hut in india

The Pizza Hut franchise stepped into the Indian fast food market by opening a dine-in restaurant
at Bangalore in 1996. The pizza franchise soon expanded itself in India and now has the KFC
brand beneath its umbrella. The fast food franchise was the first international fast food firm to
make an entry into the Indian scene and has thus pioneered the Indian pizza market.

The menu provided at the Pizza Hut franchise is that of a complete meal. Customers are
considered as honoured guests at the fast food franchise and are treated accordingly. It is the
customer satisfaction provided by the specialty food franchise that enabled it to position itself at
the top of the Indian fast food market.

The fast food franchise also ensures that it adds an Indian touch to all the varieties of pizzas that
it makes available to Indian customers. Various delicious combinations are tested at the Indian
Pizza Hut franchisee outlets by blending the original menu with Indian favourites to make fresh
salads, garlic based breads, soups, yummy pastas and delicious desserts.

The employees of the restaurant support centre of the Pizza Hut fast food franchise which
functions in New Delhi works hard to place Pizza Hut at the top of Indian market. The support
centre takes care of finance, legal and marketing sides of the Indian operations of Pizza Hut
franchisees.

NEW DELHI,MUMBAI,BANGALORE,PUNE, CHENNAI, KOLKATTA, INDORE,

AMRITSAR,LUDHIANA, JALANDHAR, CHANDIGARH, DEHRADUN, MEERUT,
GHAZIABAD,GURGAON, MATHURA, LUCKNOW,AGRA JODHPUR,JAIPUR,AHMEDABAD,
BARODA, SURAT, VAPI, BHUVANESHWAR, HYDERABAD, VISHAKHAPATNAM,
MANGALORE, MYSORE, PONDICHERRY, COIMBATORE, COCHIN, NOIDA,
GUWHATI,RAJKOT, MOHALI, VARANASI, JAMMU. All in all has its presence in 38 places in our
country with many more locations within these places.

COCLUSION [TEJASWEE]

The partners in a franchise agreement are the franchisor, who grants the franchise license to the
franchisee, who invests in it.

Remember, a franchise is NOT an independent business. The franchisee buys the opportunity to
run a business based on the franchisor’s established operational methods, often detailed in an
Operations Manual. These methods ensure that all the products and services offered by the
franchisee conform to consistent quality standards.
An Operations Manual eliminates the need for the franchisee to create a strategic plan on how
the business is run. The business logistics, such as marketing, product assembly, service delivery,
accounting, store layout, employee recruitment and training, are all mapped out. Most
franchisors provide extensive training to the franchisee to help ensure that the business is run
according to proven methods, making it more likely to succeed.

The obligations of both the franchisor and the franchisee are fully laid out in the Franchise
Agreement. Some franchisors use a standard agreement, and some are customized.

It is essential for any prospective franchisee to consult with a solicitor experienced with franchise
agreements and business contracts before signing any of these documents.

The agreement will stipulate all the terms of the business relationship, such as initial fees,
ongoing royalties, territory restrictions, operational support provided, the length of the franchise
license, license renewal, and selling or closing the franchise.

When you buy a franchise, you are agreeing to uphold the franchisor’s way of doing business. In
return, you gain the right to run an individual (or multiple) business unit(s) built on proven
methods and with a high probability of success.

THUS, law defines a franchise as an agreement between a franchisor and a franchisee which
includes three specific elements:

• A MARKETING PLAN
• A TRADEMARK ASSOCIATION
• A FRANCHISE FEE

A Marketing Plan is designed by the franchisor to guide the operation of the business by the
franchisee. The plan typically includes a list of products and services to be sold to the public,
along with required or suggested procedures for product preparation and marketing, advertising,
and recordkeeping.

A Trademark Association is the use of an identifying mark, such as a trade name or logo,
which associates the franchisee with the franchisor and its products and methods of doing
business.

A franchise fee consists of any direct or indirect payment made by the franchisee for the right to
enter into the business under a franchise agreement.

Often, the franchisor retains strict control over such things as the quality of the franchisee's
performance, uniformity among franchisees, and standardization of the marketing plan. in such
cases, the franchisee is bound by the franchise agreement to abide by the prescribed marketing
plan, to make all required payments to the franchisor in a timely manner, and to conduct the
franchised business in a way that will protect the franchisor's reputation. In addition, the
franchisor may impose sales quotas or inventory purchase requirements which may increase over
time. Therefore, we would conclude that franchising is a much better option for the franchisor
than the franchisee!!!