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11 Cards in this Set
- Front
- Back
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Product Franchising
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exclusive rights to sell product
used as distribution chanels lucrative, but difficult to obtain (ie. soft-drink bottles, car dealerships) |
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Business Format
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complete system of doing business
trade name, training, operational bp's growth is 3x Product Franchising (ie. McDonald's, 7-11) |
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Attractions of Franchising
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proven system
financial leverage opportunity to buy more than one area development and sub-franchising rights |
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What to look for when Franchising
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joint efforts of franchisor/ee
enjoy the business areas of compatibility capital, skills + support, op flexiblty |
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Compatibility
Capital |
focus on substantial cash for initial expenditure VS. substantial financial cushion to sustain
franchisor's financial resources and policies |
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Compatibility
Skills + Support |
Complimentary skills (franchisor/ee)
site selection and leasing MIS and control Sharing Advertisement cost established reputation |
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Compatibility
Operational Flexibility |
Business system double-edged sword
reducing standardizations and fostering more participative styles integrity and steadfastness of franchisor |
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How to Look for franchise's
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focus on small number quickly
public data sources franchisor's brochures analysts report Better Business Bureau reports |
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How to look for franchises' in the field
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most important, expensive and time consuming
meetings, interviews, shows, diversity |
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Offering Circulars - document about
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franchisor's business, identity, bankruptcy history, claims against franchise, territorial rights, royalty fees, term/renewal, obligations to franchisor
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Franchise Agreements
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spells out contractual rights
stated in legal terms reviewed by attorney (ie. provisions from arbitration, notices, remedies, law and jurisdiction) |
