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franshiza.ppt
- 2. franchising? A FRANCHISE OPERATION is a contractual relationship between a franchisor and a franchisee in which the franchisor offers or is required to maintain an ongoing interest in the franchisee's business in areas such as know-how and training; in which the franchisee operates under a common trade name, format and/or arrangement owned or controlled by the franchisor and the franchisee invests or invests substantially in its business of its own resources. - Definition by International Franchise Association
- 3. Concept Franchise is a method of business expansion by which the owner of a business, the franchisor, grants to investors, the franchisees, the right to operate a business in the manner and style the company has already developed.
- 5. In the 1880s, Singer wanted to distribute his sewing machines outside of his immediate area, but he also wanted to instruct customers how to properly use them. So he found licensees in certain geographic areas (similar to the current franchise territory system) and gave them the rights to sell the sewing machines. The licensees each paid for the right to sell the machines (similar to a royalty). They were also obligated by contract to teach their customers how to use the machines properly (akin to the parameters set in a modern-day franchise agreement). A legal system for selling the rights to distribute a service or product was born.
- 6. Franchise growth Zinger Sewing Machine - First Franchise (Mid 19th Century) Automobile (e.g. Ford), petroleum products (e.g. Shell), soft drinks (e.g. Coca Cola) Food and restaurants (e.g. McDonald's, Starbucks)
- 7. Types of FRANCHISE 3 main types of franchise: Product distribution franchise; Franchise in business format; Management Franchise.
- 8. The franchising model of product distribution is very similar to a supplier-dealer relationship. Typically, the franchisee sells only the franchisor's products. However, this type of franchising also includes some forms of business integration. Product distribution franchise
- 9. BUSINESS FORMAT FRANCHISING In a business format franchise, the integration of the business is more complete. The franchisee not only distributes the franchisors products and services under the franchisors trade mark, but also implements the franchisors format and procedure of conducting the business.
- 10. Famous Examples
- 11. BUSINESS FORMAT FRANCHISING - outlet in Sale, Australia outlet in Marseille, France
- 12. BOSHQARUV (MANAGEMENT) FRANCHISE Xizmat shartnomasi shakli. Franchayzer boshqaruv tajribasini, biznesni yuritish formatini va/yoki tartibini taqdim etadi.
- 13. Famous Examples
- 14. Nima uchun franchayzing kichik va o'rta korxonalar uchun muhim?? Taniqli brend nomidan foydalanish Biznes imidjini oshirish Barqaror sifatni ta'minlash Yuqori mahsuldorlikka erishish / yaxshi motivatsiyalangan xodimlar Yaxshi joylarga kirish Masshtab iqtisodlari Muvaffaqiyatsizlik xavfini kamaytirish
- 15. Nima uchun FRANCHISE? Franshizalar ochilishdan oldin muhim yordamni taklif qiladi : sayt tanlash dizayn va qurilish moliyalashtirish (ba'zi hollarda) Trening tantanali ochilish dasturi
- 16. Nima uchun FRANCHISE? Franchayzing doimiy yordamni taklif qiladi Trening milliy va mintaqaviy reklama operatsion tartib-qoidalar va operativ yordam nazorat va boshqaruvni qo'llab-quvvatlash sarf-xarajatlarning kuchayishi, ommaviy xarid qilish imkoniyati
- 17. FranchisorFranchisee munosabati Odatda shartnoma bilan quyidagicha tartibga solinadi: Boshlang'ich to'lov Royalti to'lovi/Boshqaruv to'lovi Faoliyat hududi Litsenziyaning amal qilish muddati va yangilanishi Tugatish
- 18. BE CAREFUL The franchisee is not completely independent. In addition to the initial franchise fee, franchisee must pay ongoing royalties and advertising fees. Franchisee must be able to balance restrictions and support provided by the franchisor with their own ability to manage the business
- 19. A damaged image or franchise system can result if other franchisees perform poorly or the franchisor has financial problems. The duration of a franchise is usually limited and the franchisee may have little or no say concerning termination BE CAREFUL
- 20. Not reading, understanding and/or asking questions about the franchisee agreement and other legal documents Not understanding the responsibilities of a franchisee and the rights and obligations of a franchisor Not seeking sound legal and financial advice Not verifying oral representations of franchisor Common Mistakes of Prospective Franchisees
- 21. Not analyzing the local market in advance Not analyzing the competition Not choosing the right location Common Mistakes of Prospective Franchisees
- 22. Generally young and well educated 62% below 40 years old 57% had post-secondary education 32% own their own outlets 46% occupy the outlets as tenants FRANCHISEES IN SINGAPORE
- 23. FRANCHISING IN SINGAPORE Reason for Franchising 2/3 of franchisees felt that economies of scale in bulk purchasing encouraged them to consider franchising
- 24. FRANCHISING IN SINGAPORE Feasibility of Franchising Franchising is a more feasible option of business expansion than starting own outlets
- 25. FRANCHISING IN SINGAPORE Success of the Franchise
- 26. FRANCHISING IN SINGAPORE Success of Franchising Franchisors Improvement in Average Monthly Sales since Franchising
- 27. FRANCHISING IN SINGAPORE Success of Franchising Franchisors Improvement in Average Monthly Net Profit since Franchising
- 28. FRANCHISING IN SINGAPORE Success of Franchising Franchisors Improvement in Average Monthly Sales since Franchising
- 29. FRANCHISING IN SINGAPORE Franchising helps existing businesses do better. FranchiseesResponse to the Statement: Joining a Franchise has Helped Me to Do Better than Before.
- 30. FRANCHISING IN SINGAPORE Business Performance Percentage Increase in Average Monthly Sales for Franchisees who were Previously Running a Business in the Same Trade
- 31. FRANCHISING IN SINGAPORE Business Performance Percentage Increase in Average Monthly Net Profit for Franchisees Previously Running a Business in the Same Trade
- 32. Franchising a great model for SMEs Proven formula for success Due diligence Central role of IPRs Avoidance of dispute Conclusion
- 33. Thank You Tan Tee Jim, S.C. tanteejim@leenlee.com.sg Kuala Lumpur, July 2008