Franchising
Franchising
Chapter1
Objectives
• Understand definition & concept of franchising .
• Types of franchising .
• Benefits & pitfalls of franchising .
2
Introduction
• Mr. Menon an NRI ,was very happy to return to India .
• He was amazed to see changes in Indian economy
• What one noticed is that all these companies have expanded gradually & made their presence by franchising
3
History of Franchising
•
The earliest signs of franchising in the united states dates back to 1850’sjust after Isaac Singer invested Sewing machine. •
The problem was lack of capital for manufacturing the machine. 4
History of Franchising
•
Singers idea got noticed and over the next several decades many other companies began to copy and enhance the business model franchising.
• Later Companies such as McDonald’s and Burger king took franchising to a whole new level.
5
History of Franchising
•
Franchisor is the entity or person owning to the rights or license of the business.
• Authorization granted by a manufacture to a distributor or dealer to sell his products.
6
Definition of Franchisee
• An individual or a company who purchases and runs a franchise. •
Franchisee is the party in franchising agreement that is purchasing the rights to use business trademarks, associated marks & other proprietary knowledge in order to open branch.
7
Definition of Franchisor
• An individual or a company owning rights or license of business. •
Franchisor is a person who grants the license or permission to various franchisees
8
Definition of Franchisor
Franchisor
Franchisee
Site Selection Oversees, may choose
Chooses with approval
Design
Provides Prototype
Design
Implements design
Menu
Set by Franchisor
Changed only by approval
prices
Recommendations
Decides actual prices
9
Franchising in India
•
India with its huge market and growing
Chapter1
Objectives
• Understand definition & concept of franchising .
• Types of franchising .
• Benefits & pitfalls of franchising .
2
Introduction
• Mr. Menon an NRI ,was very happy to return to India .
• He was amazed to see changes in Indian economy
• What one noticed is that all these companies have expanded gradually & made their presence by franchising
3
History of Franchising
•
The earliest signs of franchising in the united states dates back to 1850’sjust after Isaac Singer invested Sewing machine. •
The problem was lack of capital for manufacturing the machine. 4
History of Franchising
•
Singers idea got noticed and over the next several decades many other companies began to copy and enhance the business model franchising.
• Later Companies such as McDonald’s and Burger king took franchising to a whole new level.
5
History of Franchising
•
Franchisor is the entity or person owning to the rights or license of the business.
• Authorization granted by a manufacture to a distributor or dealer to sell his products.
6
Definition of Franchisee
• An individual or a company who purchases and runs a franchise. •
Franchisee is the party in franchising agreement that is purchasing the rights to use business trademarks, associated marks & other proprietary knowledge in order to open branch.
7
Definition of Franchisor
• An individual or a company owning rights or license of business. •
Franchisor is a person who grants the license or permission to various franchisees
8
Definition of Franchisor
Franchisor
Franchisee
Site Selection Oversees, may choose
Chooses with approval
Design
Provides Prototype
Design
Implements design
Menu
Set by Franchisor
Changed only by approval
prices
Recommendations
Decides actual prices
9
Franchising in India
•
India with its huge market and growing