franchiser

Examples of franchiser in the following topics:

• Types of Franchises

  • On this basis, there are three different types of franchise:
  • In most cases, the franchisee also buys supplies from the franchiser.
  • Fast food restaurants are good examples of this type of franchise.
  • Through manufacturing franchises, a franchiser grants a manufacturer the right to produce and sell goods using its name and trademark.
  • This type of franchise is common among food and beverage companies.

• Franchise Agreements

  • Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule .The Franchise Rule requires that a franchisee be supplied a Uniform Franchise Offering Circular (UFOC ) or Franchise Disclosure Document (FDD ) prior to signing a franchise agreement, a minimum of ten days before signing a franchise agreement.
  • Each state has unique laws regarding franchise agreements.
  • The content of a franchise agreement can vary depending on the franchise system, the state jurisdiction of the franchisor, franchisee, and arbitrator.
  • Uniform Franchise Offering Circular (UFOC) or FDD Franchise Disclosure Document (FDD)
  • Franchising agreements contain many legal documents that must be understood and filled out.

• Franchising

  • In franchising, an organization (the franchiser) has the option to grant an entrepreneur or local company (the franchisee) access to its brand, trademarks, and products.
  • Franchising is a particularly useful practice when approaching international markets.
  • Franchising has some weaknesses as well, from a strategic point of view.
  • Most importantly, organizations (the franchisers) lose a great deal of control.
  • While the risk of franchising is much lower in terms of capital investment, so too is the returns derived from operations (depending on the franchising agreement in place).

• Trends in Franchises: Growth

  • From 2001 to 2005, the franchising sector grew at a faster pace than many other sectors of the U.S. economy .
  • Payroll generated by franchised businesses grew 21.6% compared to 15.4% for all businesses.
  • The International Franchise Association reported that 2012 would be the year that franchising rebounds.
  • The economic outlook published for 2012 projects an increase of 1.9% in franchise establishments.
  • Franchising is the practice of using another firm's successful business model.

• Working from Home or Online

  • Home franchise operations have made franchising more accessible and affordable than ever, but still require knowledge and expertise.
  • One important factor leading to the record number of franchises in recent years is the proliferation of home based franchise opportunities.
  • This has made franchising accessible to a wider group of people.
  • Because of enormous charges in traditional franchise companies, very few people meet the expense needed to become franchise owners.
  • In considering franchises, you should see if you are well-suited to particular franchise options by determining your areas of expertise.

• Trends in Franchises: International Adoptions

  • Let's take a quick look at the benefits of global franchising, and where the potential pitfalls are:
  • For the franchiser (i.e. the parent company), franchising allows rapid expansion with less risk and required capital (as some of this risk is assumed by franchisee, along with funding).
  • A franchising model can provide both.
  • The franchiser is outsourcing some amount of control and returns on investment to the franchisee.
  • Convenience stores that franchise, such as 7-Eleven, operate quite similarly.

• Advantages of Franchises

  • A franchise agreement can have many benefits for both the franchisor and the franchisee.
  • Buying a franchise business provides a higher chance for success.
  • - A franchise gives more security from the beginning.
  • When you purchase a franchise, all the necessary groundwork has been done already.
  • - The new franchise owner gains many benefits from the association with the main franchise company.

• Disadvantages of Franchises

  • A franchise agreement can also have disadvantages for both the franchisor and the franchisee.
  • - High entry and ongoing cost: It can be more expensive to start a franchise than an independent business.
  • You can open your own burger bar for the fraction of the cost of buying the rights to a McDonald's franchise.
  • Thus, franchising is often an option open only to already wealthy businessmen.
  • Royalties are paid periodically during the life of the franchise agreement.

• Technology in Franchises

  • Here's what he has to say about technology and franchises:
  • In the first quarter of 2010, Saladworks released three new technological advances for the franchise and its customers.
  • The franchise does use other phone providers based on specific coverage needs and the desires of the local franchisee.
  • Question from Top New Franchises: What role does technology play in your organization?
  • Give examples of how franchises are using technology to improve business performance

• Licensing

  • Franchising represents a very popular type of licensing arrangement for many consumer products firms.
  • Holiday Inn, Hertz Car Rental, and McDonald's have all expanded into foreign markets through franchising.