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Introduction to Franchising Basics

The document discusses franchising, including an introduction defining franchisors and franchisees. It outlines benefits such as established brands, proven business models, training and support, risk reduction, and access to financing. It also describes types of franchising like product distribution, business format, manufacturing, conversion, home-based, mobile, and business opportunity ventures franchises.

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30 views7 pages

Introduction to Franchising Basics

The document discusses franchising, including an introduction defining franchisors and franchisees. It outlines benefits such as established brands, proven business models, training and support, risk reduction, and access to financing. It also describes types of franchising like product distribution, business format, manufacturing, conversion, home-based, mobile, and business opportunity ventures franchises.

Uploaded by

pkochar216
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

FRANCHISING

PRESENTED TO PRESENTED BY
PANKAJ JAIN
PROF. RANJANA BHATI
YASHWARDHAN SINGH
INTRODUCTION
• FRANCHISING :- It is a method for expanding businesses and distributing
products and services. It is based on a relationship between the brand owner
(franchisor) and the local operator (franchisee).
• The FRANCHISOR is the company that is franchising its business.
• The FRANCHISEE is the person who buys the franchise rights from the franchisor.
• A FRANCHISE is the agreement between two legally independent parties which
gives a person (franchisee) the right to trade in a designated area under the trademark
of franchisor.
BENEFITS OF FRANCHISING
• Established Brand :- Franchisees benefit from the established reputation and
brand recognition of the franchisor, reducing the need for extensive marketing
efforts.
• Proven Business Model :- Franchisees gain access to a proven business model,
including operational procedures, marketing strategies, and training programs,
which can increase the likelihood of success.
• Training and Support :- Franchisors typically provide training and ongoing
support to franchisees, including assistance with site selection, marketing, and
operational guidance.
• Risk Reduction :- Franchisees operate under a recognized brand with a track
record of success, reducing the inherent risks associated with starting a new
business from scratch.
• Access to Financing :- Franchisees may have an easier time securing financing
from banks or investors due to the established nature of the franchise system and
its proven profitability.
TYPES OF FRANCHISING
• Product Distribution Franchises :- This involves the franchisor providing the
franchisee with products to sell.
• Business Format Franchises :- Here, the franchisor not only provides products
but also the complete business format, including branding, operating procedures,
and marketing strategies.
• Manufacturing Franchises :- The franchisor grants the franchisee the right to
produce and sell its products using its name and trademark.
• Conversion Franchises :- Existing businesses convert to a franchise model,
adopting the franchisor's brand, systems, and support.
• Home-Based Franchise :- Franchisees operate their business from home, which
often requires lower overhead costs and can offer more flexibility.
• Mobile Franchise :- Franchisees operate from a vehicle or mobile unit, allowing
them to reach different locations and target markets.
• Business Opportunity Ventures :- In this type, the franchisor provides a
product or service, and the franchisee operates independently with limited
support.

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