What are the forms of franchise agreements under which franchising is practiced?
Following are the forms of franchise agreements under which franchising is practiced: 1. Individual franchise agreements where it involves the sale of a single franchise for a specific location. 2. An area level franchise that allows the franchisee to own and operate a specific number of outlets in a particular geography. 3.
What do you want to learn about franchising?
Learn about:- 1. Introduction to Franchising 2. Meaning and Definition of Franchising 3. Concept 4. Salient Features 5. Types 6. Importance 7. Forms 8. Working 9. Franchising in India 10. Four Ps 11. Franchise Development Model 12. Checklist of Basic Franchise Agreement Terms 13. Master Franchise and Master Franchisee 14. Selection 15.
Which of the following is an example of a franchised restaurant?
Some of the examples are fast-food restaurants such as McDonald’s, Domino’s Pizza, and KFC. Such franchisees maintain the design and styling aspects determined by the franchiser in their retail environments, ranging from the product offered to store design, ambience, atmospherics, and internal infrastructure to service standards to deliveries. b.
What does a franchisor do for a franchisee?
The franchisor also provides quality field support services. These services normally include representatives from the headquarter organization visiting franchisees’ stores to analyze the product, presentation, as well as markets. Franchise agreements vary from franchise to franchise.
Which of the following are types of distribution channels?
The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales.
Which of the following is not an advantage for the franchisor in a franchising arrangement?
Which of the following is NOT an advantage for the franchisor in a franchising arrangement? Increased control.
What is a network of firms that are interconnected in their quest to provide seller a means of infusing the marketplace with their goods and buyers?
distribution channelA distribution channel is a network of firms that are interconnected in their quest to provide sellers a means of infusing the market place with their goods and buyers a mean of purchasing those goods, doing all as efficiently and profitably as possible (Iacobucci 2013).
What term refers to the extreme case of selectivity group of answer choices?
What term refers to the extreme case of selectivity? exclusive channel.
What are the types of franchising?
The five major types of franchises are: job franchise, product franchise, business format franchise, investment franchise and conversion franchise.
Which form of franchising is the most common today?
Business format franchising is the most widely used form of franchising. Four essential elements of business format franchising.
What is the importance of distribution channel how channel members add value while distribution of different products to the end users?
It is very important because product in one place while the consumption scattered in many place. So there is big gap between producers and the consumers. So through channels of distribution can only fill the gap. A channel of distribution connects a link between the producers and the consumers.
What are the 4 types of distribution channel?
There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels.
What is distribution channel management state the characteristics of distribution channel management?
A distribution channel is a network of intermediaries that facilitates product delivery from the manufacturer to the end consumer and transfers payments from the buyer to the producer. In other words, it is the route through which a product travels from the production end to the point of consumption.
What are the four types of selectivity?
Four specific areas including stereoselectivity; clusters, alloys and poisoning; shape selectivity; and reaction pathway control will be discussed.
Which of the following media options has the most reach quizlet?
Broadcast television, cable television, and national magazines have the largest and broadest reach of any of the media. 10. In the context of audience exposure to a media vehicle, increasing the frequency of exposures results in an increased reach of the target audience.
What is the primary means by which a company communicates with its customers?
Answer and Explanation: The answer is option c, that is advertising. This is because communication with customers regarding products, brands, and position in the marketplace is called marketing. So primary means of marketing is advertising.
What are the advantages of franchising?
Advantages of buying a franchise You don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model. Franchises have a higher rate of success than start-up businesses. You may find it easier to secure finance for a franchise.
Which of the following are the disadvantages of the franchise business quizlet?
What are the drawbacks of being a franchisee? Drawbacks include high franchise fees, managerial regulation, shared profits, and transfer of adverse effects if other franchisees fail.
Which of the following best describes the relationship between the franchisor and franchisee?
The franchisor owns the trademark(s) and the operating system for the franchise. The franchisee is licensed to use both the trademark and the operating system according to the terms and conditions set forth in the franchise agreement. Both the franchisor and franchisee must fulfill their obligations under the contract.
What can be disadvantage associated with the use of a franchise Mcq?
What can be a disadvantage associated with the use of a franchise? Brand recognition for franchisor. Turnkey operation for franchisee. Proven business and system for franchisor. ... Identify the hindrance to buying a franchise. Passing a difficult test. Strict laws. Having to personally finance the building of the store.
What chapter is Franchising?
Start studying Chapter 6: Franchising. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
What is the objective of franchisees?
Objective: To give franchisees the information they need to protect themselves from dishonest franchisees and to make good investment decisions
What does a franchisee purchase right to sell?
Franchisee purchases right to sell specific products under the Franchiser Brand Name and Trademark thru a selective, limited distribution network.
How much do franchisees contribute to sales?
Franchisees contribute 1% to 5% of sales.
What does a franchisee purchase?
Franchisee purchases a complete business system including license for trade name use, products or services to be sold or resold, operations methods, marketing plan, quality control process, business support services, etc.
How much are franchise royalties?
Royalties range from 1% to 11% of franchisees' sales
Can a franchisee use a franchise name?
Franchisee purchases right to use the Franchisor's Tradename without distributing particular products exclusively under the Franchisor's name.
What are some examples of franchising?
Sometimes the parent company licenses its franchisees not only the rights for distribution, but also part of the manufacturing process. A common example of this type of franchising is soft drink manufacturers, like Pepsi and Coca-Cola.
What is franchising business?
Franchising is a flexible business model, and practically any type of business can be successfully franchised. Franchises can be categorized by different factors, such as investment level, the franchisor’s strategy, marketing, operations, relational type, and more. There are five major types of franchising.
What is business format franchising?
Business format franchising is the most popular of all the types of franchising, and is what most people think about when talking about the franchising industry. This is likely why a common objection to franchising is, “I don’t want to work in fast food.” A franchisee under the business format operates his or her business under the parent company’s brand, plus gets the entire proven system under which to operate and market the products or services.
What is investment franchise?
An investment franchise is usually a large-scale business that requires a huge capital investment (hu ge compared to other franchising options). The franchisee is actually a major investor who provides the money and management team, or sometimes engages their own franchisee, to operate the business.
What is a job franchise?
A Job Franchise is generally a low-investment franchise (often home-based) that can be operated alone or with minimal staffing (less than 5). The franchisee is only required to pay a franchise fee and minimal startup costs, like equipment, basic materials, and sometimes a vehicle. A large number of industries can be franchised in this manner, ...
What is product driven franchise?
Sometimes called a Distribution Franchise, these product-driven franchises are where the franchisee distributes the parent company products and some related services. The parent company provides the use of its branded trademark, but not typically an entire system for running a business. Product franchises are predominantly large product dealers. Consequently, product, or distribution, franchising makes up the highest percentage of total US retail sales.
Why do companies franchise?
This is a way for existing companies to experience rapid growth, because the franchisee isn’t starting up a new business location from scratch. The basic business and even a level of clientele are already in place. The independent company that enters into a franchise relationship also benefits by gaining the strength of a popular, successful brand, and all the support systems that come with it.
What is franchise in franchising?
A franchise involves the franchisor in granting the franchisee certain rights over a certain area for a specified period. Exactly what those rights, the area and period are is a matter of negotiation between the franchisor and the intending franchisee.
What is franchising in business?
Franchising is a continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing, and managing in return for a monetary consideration. Franchising is a form of marketing and distribution in which the franchisor grants to an individual or company (the franchisee) the right to run a business selling a product or providing a service under the franchisor’s business format and identified by the franchisor’s trademark or brand.
What is a franchise system?
Franchising system depends upon a continuous contractual relationship between the franchiser and the franchisee. The franchiser may be a manufacturer or a service organisation. The franchisee is an independent business firm which buys the right to run and operate a business by using the franchiser’s brand name or trade mark.
What is franchising in marketing?
Franchising is a form of marketing and distribution in which the franchisor grants to an individual or company (the franchisee) the right to run a business selling a product or providing a service under the franchisor’s business format and identified by the franchisor’s trademark or brand. Learn about:- 1.
What does a franchisee pay?
Essentially, a franchisee pays an initial fee and on-going royalties to a franchisor; in return, the franchisee gains the use of a trademark, on-going support from the franchisor, and the right to use the franchisor’s system of doing business and sell its products or services.
Why is business format important?
The business format process is very important to the successful franchisee . These processes which must be carefully developed and supported include – marketing, promotion, brand recognition, management, training, accounting services, and financial support. The franchisee must develop proper processes to ensure the continued success of the franchise organization.
What is joint investment in franchising?
As the name suggests, these are cases where both the franchisor and the franchisee make joint investments into the business (the space typically would be provided by the franchisee). They would then divide operational responsibilities, working capital as well as profit-sharing in a manner acceptable to both the parties.
What is the difference between a franchise and a franchisor?
M-Commerce. The individual or business that grants the right to the franchise is called the franchisor, while the beneficiary of the right is called the franchise. Franchising is a business marketing strategy to cover maximum market share. Franchising is a business relationship between two entities wherein one party allows another ...
What do franchisees learn from brands?
Franchisees will get to know business techniques and trade secrets of brands.
What is franchising agreement?
Franchising is an arrangement where franchisor (one party) grants or licenses some rights and authorities to franchisee (another party). Franchising is a well-known marketing strategy for business expansion. A contractual agreement takes place between Franchisor and Franchisee. Franchisor authorizes franchisee to sell their products, goods, ...
What is the benefit of franchisees?
Some advantages to franchisees are they do not have to spend money on training employees, they get to learn about business techniques.
How does a franchise work?
Under a franchise, the two parties generally enter into a Franchise Agreement. This agreement allows the franchise to use the franchisor’s brand name and sell its products or services. In return, the franchisee pays a fee to the franchisor.
What does a franchisor do in return?
In return, the franchisor supplies its products, services, technological know-how, brand name and trade secrets to the franchise. It even provides training and assistance in some cases.
Why is franchising important?
This is because all expenses of selling are borne by the franchise. This further also helps in building a brand name, increasing goodwill and reaching more customers.