franchisor

Examples of franchisor in the following topics:

• Disadvantages of Franchises

  • A franchise agreement can also have disadvantages for both the franchisor and the franchisee.
  • While there are many advantages for the franchisor in entering a franchising agreement, some of the potential risks are:
  • - Franchisees have to pay a significant percentage of their revenues to the franchisor: On top of the upfront money needed to start a franchise, the franchisee must pay fees and royalties to the franchisor.
  • - Uninterested franchisors: Some franchisors may have little interest in their franchisee's success and may be more interested in just collecting the fees associated with the franchise.
  • - Strict product rules: Franchisees experience less flexibility to use their own initiative due to restraints from the franchisor.

• Franchise Agreements

  • A Franchise Agreement is a legal, binding contract between a franchisor and franchisee, enforced in the United States at the State level.
  • A Franchise Agreement is a legal, binding contract between a franchisor and franchisee, enforced in the United States at the State level.
  • The content of a franchise agreement can vary depending on the franchise system, the state jurisdiction of the franchisor, franchisee, and arbitrator.
  • Franchisors Services, such as: Administration, Collections and Billing, Consultation, Marketing, Manual, Training
  • Transfer of License, such as: Consent of franchisor, Termination of license, Termination by licensee, Termination by licensee

• Advantages of Franchises

  • A franchise agreement can have many benefits for both the franchisor and the franchisee.
  • Franchisors benefit from franchise agreements because they allow companies to expand much more quickly than they could otherwise.
  • Franchisors receive royalty payments that are set as a percentage of profits.
  • In addition, the franchisee gets training and head office support from the franchisor; this may be essential if the franchisee is new to running a business and has no experience or business knowledge.
  • The franchisor offers a great deal of business experience that would take years for the average business person to acquire .

• Technology in Franchises

  • The use of new technologies, such as social media, apps, and smartphone connectivity, can help franchisees and franchisors to get the most out of their business.

• Types of Franchises

  • While there are many ways to differentiate between different types of franchises (size, geographic location, etc), we will be looking at how different franchisors allow franchisees to use their name.

• Trends in Franchises: International Adoptions

  • Compared to licensing, franchising agreements tends to be longer and the franchisor offers a broader package of rights and resources which usually includes: equipments, managerial systems, operation manual, initial trainings, site approval, and all the support necessary for the franchisee to run its business in the same way it is done by the franchisor.

• The Business Plan

  • Elements of a Business Plan: Cover sheet, Executive summary (statement of the business purpose), Table of contents, Body of the document, Business Description of business, Marketing Competition, Operating procedures, Personnel Business insurance, Financial data, Loan applications, Capital equipment and supply list, Balance sheet Break-even analysis, Profit and loss statements, Three-year summary, Detail by month -- first year, Detail by quarters -- second and third year, Assumptions upon which projections were based, Pro-forma cash flow, Supporting documents, Tax returns of principals (partners in the business) for last three years, Personal financial statements (all banks have these forms), Copy of franchise contract and all supporting documents provided by the franchisor (for franchise businesses), Copy of proposed lease or purchase agreement for building space, Copy of licenses and other legal documents, Copy of resumes of all principals, Copies of letters of intent from suppliers, etc.