franchisee

Examples of franchisee in the following topics:

• Disadvantages of Franchises

  • A franchise agreement can also have disadvantages for both the franchisor and the franchisee.
  • However, poor policies on the part of the main company led to struggling franchisees: huge growth led to market saturation and a weakening of the brand as franchisees were found everywhere from malls to gas stations (whereas the original appeal was as a delicacy); Krispy Kreme forced franchisees to buy equipment at very high mark-ups, weakening the franchisee profits.
  • - Difficult to control activities of franchisees: In any franchise agreement (particularly when there is geographical separation between the franchisor and the franchisee), it can be difficult to control the activities of the franchisee and ensure that their activities are up to standard.
  • - 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.
  • Franchisees face risks and disadvantages that may jeopardize their ability to stay open.

• 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.
  • Franchisee Payments, such as: Initial License Fee, Training Fees, Marketing Fund, Royalties, Renewal fee, and Transfer fee
  • Franchisee Obligations, such as: Use of Trademarks, Financial Information, Insurance, Financial and Legal responsibility

• Technology in Franchises

  • This helped franchisees compete more effectively against rivals.
  • Dave Materson, Chief Technology Officer of a franchise company in West Palm Beach, Florida believes that new technology benefits those who train franchisees, the franchisees themselves, as well as their customers.
  • "Put our franchisees in the mix and tech "ease of use" shines through in a pronounced way.
  • Franchisees are using technology in various ways.
  • The franchise does use other phone providers based on specific coverage needs and the desires of the local franchisee.

• Advantages of Franchises

  • A franchise agreement can have many benefits for both the franchisor and the franchisee.
  • Through franchising, a company invests very little capital or labor because the franchisee supplies both.
  • The franchisee also has numerous advantages that come from entering a franchising agreement, including:
  • 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.
  • Franchisees gain many benefits from being a franchisee rather than starting their own business from scratch.

• Franchises and Licenses

  • A franchisee will then purchase the rights to sell the franchisor's products in a given area and benefit from the franchisor's marketing efforts.
  • The franchisor makes money by selling rights to franchisees, while the franchisee profits by selling directly to customers.
  • If a franchisee makes periodic payments to the franchisor over the contract's term, the franchisee does not record a franchise asset.
  • Instead, the franchisee records a franchise expense when she pays the franchise fee.
  • If the contract requires that a lump sum be paid up front to secure the franchise rights for several years, the franchisee would record a franchise asset on its balance sheet.

• Trends in Franchises: International Adoptions

  • 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).
  • For the franchisee, they are given an opportunity to own a business with an incredible pool of resources, knowledge, and support.
  • For the franchisee, much of the initial business plan, sourcing, quality control, marketing, and other core functions are already prepared, tried, and tested.
  • The franchiser is outsourcing some amount of control and returns on investment to the franchisee.
  • The franchisee, as a result, is incurring a substantial cost.

• 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.
  • In this arrangement, the franchisee will take the majority of the risk in opening a new location (e.g. capital investments) while gaining the advantage of an already established brand name and operational process.
  • In exchange, the franchisee will pay a certain percentage of the profits of the venture back to the franchiser.
  • Franchising requires very little capital investment on behalf of the parent company, and the time and effort of building the stores are similar outsources to the franchisee.
  • While it is a faster and cheaper mode of entry, it ultimately results in a profit share between the franchiser and the franchisee.

• 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.
  • In most cases, the franchisee also buys supplies from the franchiser.

• Working from Home or Online

  • Start-up costs for new franchisees are in the range of $130,000 - $180,000.
  • Previously, franchising a business meant that a franchisee would need to come up with a huge cash investment.

• Developing Alternate Plans of Action

  • Or make a franchise agreement with a local franchisee?