List Key Factors Of Franchises

4604 WordsJul 26, 201519 Pages
1 Key factors of franchises 1.1Types of franchises Factor Definition Single product or service A distributor acts as an outlet for the single products of a manufacturer. Manufacturing and wholesale The franchisor supplies raw materials and/or specialised knowledge to a franchisee who manufactures and wholesale distributes the finished product. Manufacturing and retail The franchisor supplies raw materials and/or specialised knowledge to a franchisee who manufactures and retail distributes the finished product Wholesale and retail The franchisor only do the wholesale and retail distributes the finished product. Retail product The franchisor only do the retail product distributes the finished product. Retail service The franchisor only do the retail service distributes the finished product. Ideas The franchisor markets a unique business system under a trade name and franchising adopt the standardise procedures to run their own business. Intellectual property The franchisor markets a unique business system under a trade name( use intellectual property) to run their own business. 1.2 Concept of franchises Concept Explanation Linked individual enterprises The franchisor is linked to the franchise and any other franchisee. Agreed business terms Documents for franchise contract for setting up a term and relations to tell both parties what must do. Offer standardised products / or services You must have Operational Manual, and you must follow
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