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11 Cards in this Set

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