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FRANCHISING
FRANCHISING
 Commercialization and
services, where the
franchisor offers
through a contract, the
authorization for the
distribution, production
and sale of goods and
services successful the
franchisee for a
specified period.
WHO MAKE UP A FRANCHISING
 Franchisor: Franquiciante
 Franchisee: Franquiciado
The function of franchising contract is to
regulate relations between franchisor and
franchisee, providing obligations for both
parties.
ELEMENTS
 Brand positioning in the market.
 Transmission of knowledge, experience
franchisor.
 License of items of property continued provision
of technical assistence to the franchisee.
TYPES OF FRANCHISING
 Excess product or trademark
 Business Format Franchising
 Franchising by convention
 Social franchising
ADVANTAGES DISADVANTAGES
Reputation Less Independence
Working Capital Standardization
Experience slow
Management Assistance Cancellation of the
contract
Utilities Control of franchise
Motivation Competitor
FRANCHISOR
ADVANTAGE DISADVANTAGES
Fastest growing business Investment in training and
supervision.
New segments The investments are
recovered in the medium
and long term.
Expansion to national and
international markets
Possible omission of
franchisse on revenue,
reducing royalty payments.
The expansion is done with
other people卒s money.
Undisciplined franchisee
that can alter the quality.
Constant income through
royalties.
Little discipline by the
franchisee.
Gets creative partners.
No financial responsibility in
case of bankruptcy of the
OBLIGATIONS
 Transmit secrets, trademarks, patents a
franchisee
 Technical and commercial support to the
franchisee during the term of the contract.
 Provision of services / products
 Clauses franchisee activity
 Clause in favor of the franchisee
FRANCHISEE
ADVANTAGE DISADVANTAGES
Start a business with little
capital business
recognition
No acceses to ownership
of the brand.
Allow monitoring and
control of the franchisor.
the prestige of the brand
succes probability
The contracts are short (5
years)
Franchisor providers Payment of entry.
Help in the areas of
marketing, fanancial.
sometimes maladaptive to
the philosophy of the
franchisor.
Learn constant new
services/ products.
loss of business
independence.
exclusivity zone. Maintain an unwanted
parther, the duration of the
franchise.
OBLIGATIONS
 Invest in the business under the franchisor's
instructions.
 Payments or credits on royalties
 Conduct a minimum annual sales figure
 Use or sell the products of the brand of the
franchisor to maintain a uniform image.
 Duty not to compete during and after a contract
year ended.
LICENSE
It is where the trade mark owner authorizes use a
third in exchange for financial compensation.
DIFFERENCE BETWEEN LICENSE
AND FRANCHISING
In the franchising, the franchising is subject to
additional obligations; In the license there is freedom of
brand, accordance with the protocols signed.
SOURCES
 Franquicias: Una perspectiva Mundial. (n.d.). Books
Google. Retrieved March 12, 2013, from
books.google.com.co/books?
APA formatting by BibMe.org.
 Modelos de contratos internacionales - Google Libros.
(n.d.). Google Books. Retrieved April 22, 2013, from
http://books.google.com.co/books?id=-
xdYM6VXZXQC&pg=PA86&dq=franquicias&hl=es&sa=X&
ei=GcNHUYmTK4O08QS9wIHgBQ&ved=0CF4Q6AEwCA
#v=onepage&q=franquicias&f=false
APA formatting by BibMe.org.
 Busca Franquicias. (n.d.). Web PDF. Retrieved April
12, 2013, from winred.com/biblioteca/franquicias.pdf
APA formatting by BibMe.org.
Ad

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Franchising

  • 2. FRANCHISING Commercialization and services, where the franchisor offers through a contract, the authorization for the distribution, production and sale of goods and services successful the franchisee for a specified period.
  • 3. WHO MAKE UP A FRANCHISING Franchisor: Franquiciante Franchisee: Franquiciado The function of franchising contract is to regulate relations between franchisor and franchisee, providing obligations for both parties.
  • 4. ELEMENTS Brand positioning in the market. Transmission of knowledge, experience franchisor. License of items of property continued provision of technical assistence to the franchisee. TYPES OF FRANCHISING Excess product or trademark Business Format Franchising Franchising by convention Social franchising
  • 5. ADVANTAGES DISADVANTAGES Reputation Less Independence Working Capital Standardization Experience slow Management Assistance Cancellation of the contract Utilities Control of franchise Motivation Competitor
  • 6. FRANCHISOR ADVANTAGE DISADVANTAGES Fastest growing business Investment in training and supervision. New segments The investments are recovered in the medium and long term. Expansion to national and international markets Possible omission of franchisse on revenue, reducing royalty payments. The expansion is done with other people卒s money. Undisciplined franchisee that can alter the quality. Constant income through royalties. Little discipline by the franchisee. Gets creative partners. No financial responsibility in case of bankruptcy of the
  • 7. OBLIGATIONS Transmit secrets, trademarks, patents a franchisee Technical and commercial support to the franchisee during the term of the contract. Provision of services / products Clauses franchisee activity Clause in favor of the franchisee
  • 8. FRANCHISEE ADVANTAGE DISADVANTAGES Start a business with little capital business recognition No acceses to ownership of the brand. Allow monitoring and control of the franchisor. the prestige of the brand succes probability The contracts are short (5 years) Franchisor providers Payment of entry. Help in the areas of marketing, fanancial. sometimes maladaptive to the philosophy of the franchisor. Learn constant new services/ products. loss of business independence. exclusivity zone. Maintain an unwanted parther, the duration of the franchise.
  • 9. OBLIGATIONS Invest in the business under the franchisor's instructions. Payments or credits on royalties Conduct a minimum annual sales figure Use or sell the products of the brand of the franchisor to maintain a uniform image. Duty not to compete during and after a contract year ended.
  • 10. LICENSE It is where the trade mark owner authorizes use a third in exchange for financial compensation. DIFFERENCE BETWEEN LICENSE AND FRANCHISING In the franchising, the franchising is subject to additional obligations; In the license there is freedom of brand, accordance with the protocols signed.
  • 11. SOURCES Franquicias: Una perspectiva Mundial. (n.d.). Books Google. Retrieved March 12, 2013, from books.google.com.co/books? APA formatting by BibMe.org. Modelos de contratos internacionales - Google Libros. (n.d.). Google Books. Retrieved April 22, 2013, from http://books.google.com.co/books?id=- xdYM6VXZXQC&pg=PA86&dq=franquicias&hl=es&sa=X& ei=GcNHUYmTK4O08QS9wIHgBQ&ved=0CF4Q6AEwCA #v=onepage&q=franquicias&f=false APA formatting by BibMe.org. Busca Franquicias. (n.d.). Web PDF. Retrieved April 12, 2013, from winred.com/biblioteca/franquicias.pdf APA formatting by BibMe.org.