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about franchising
Ten pieces of advice for franchisors
- One - offer an attractive and unique product
- Two - create a strong brand
- Three - simplify the concept so it can be repeated easily
- Four - test the concept in advance and verify
- Five - create strong headquarters for the network
- Six - choose your franchisees carefully
- Seven - offer a balanced and comprehensible agreement
- Eight - describe know-how comprehensibly in the manual
- Nine - keep improving the concept
- Ten - communicate a lot with your franchisees and respect them
glossary
Franchise - The rights you acquire to offer specific products or services within a certain location for a declared period of time.
Franchisor - The parent company or person that grants, for a fee and other considerations, the right to use its name and system of business operations.
Franchisee - A person or entity to whom the right to conduct a business is granted by the franchisor or licensor.
Franchise Agreement - outlines the expectations and requirements of the franchisor and describes their commitment to the franchisee. Includes information about territorial rights of the franchisee, location requirements, training schedule, fees, general obligations of the franchisee, general obligations of the franchisor, etc.
Franchise Fee - An up-front entry fee, usually payable upon the signing of the contract (franchise agreement) for the right to use the franchisor's name, brand, and business system.
Royalty Fees - Ongoing fees paid to the franchisor by franchisees in respect of ongoing training and support services provided.