FRANCHISING

Submitted to: Submitted by:

Arti thakur Himanshu
23BBA002
1st semester
MEANING OF FRANCHISING
Franchising is a system used by a company (franchisor) that grants others (franchisees) the
right and license (franchise) to market a product or service under the franchisor’s trade
names, trademarks , service marks, know-how and method of doing business. It is a system
for distributing products or services through independent resellers.
 01
Franchise
A business arrangement where an
individual or entity (franchisee)
purchases the rights to operate a
business under the established
brand.
02
Brand Expansion
Franchising allows a successful
business to expand its presence
into new markets through
independent franchisees.
03
Operational Support
Franchisors provide ongoing
training, marketing support, and
operational guidance to ensure
consistency and success across
franchise locations.
Business Model Licensing Expansion Collaboration

Operating a business Granting the rights to use Growing a business Working together with
using an established intellectual property and through independent and franchisees to achieve
system trademarks. geographically dispersed mutual success.
and brand. locations.
 Some Terms Regarding Franchising

The independent owner of a The right to use a specific business

The licensing company in
franchise outlet who enters into name and sell its goods or services
the franchise agreement. an agreement with a franchisor. in a specific city, region or country.

Franchisor Franchisee Franchise

World Famous Franchise Business
 Purposes of Franchising

To restore To provide an easily To compete with To allow consumers

individual recognized and to buy good quality
big business.
entrepreneurship. accepted product or items or services at
service. the right
 Types and Arrangements of Franchise

Franchises are found in practice as under :

 Sales Type Franchise
 Store Type Franchise
 Services Type Franchise

• Manufacturers
and • Wholesalers
Manufacturers
• Retailers
and • Wholesalers
Wholesalers
• Retailers
and
Retailers • Retailers

and
Services • Services
 Procedure for Evaluating Franchise Opportunities
If the parties interested to become franchisees piously they should follow the undernoted seven procedures, the risk of
being in the risk of being in the wrong footing may be minimized to great extent:

2. 5.
Choose product Get disclosure
Services statement

7.
1. 4. Review checklist Compare
Do self analysis of question franchises and
pick best one

3.
Search out likely 6. Hire lawyer
franchise
candidates
 Franchise Agreement

Fees and initial cost Royalties

Life of Franchise Termination

 Points about which to Remain be careful

 Ask questions of several existing franchises.

 Consider the experience and reputation of the franchise.
 Make sure they understand terminations, transfers, and renewals.
 Ask if prices to the customers are predetermined or flexible.
Thank you