Franchising

Thèmes abordés

Franchising - trademark - a trade name - distribution network - brands - business expertise

Résumé du document

Definition of franchising: a legal and business relationship between:
-the owner of a trademark, service mark, a trade name, an advertising symbol
-and an entrepreneur who pays, for the right to use that identification, to the owner for his or her own business
The concept: a partnership based on trust and a willingness to work together for mutual success

Franchisees possess business skills, they pay royalties and they support the company values whereas the franchisers have a thorough knowledge of business expertise and owns the resources.

There are different types of franchises
•Trade name franchising
There is only the brand name in common.
•Product distribution franchising
The products are in common, they sell specific products with limited distribution network.
•Pure franchising
It's a complete business format.

Extraits

[...] I worked as student in Mc Donald's, which is a perfect example for a pure franchising. Everything comes from the top: the management, the labour policy[5], products, the decoration They can't buy something without ordering at the central buying service. And when a new product is created, they have to order it to have the same range as others restaurants. Moreover, they have to send every month a report to Mc Donald's France, because they have to be competitive and earn always more money. [...]

[...] Product distribution franchising The products are in common, they sell specific products with limited distribution network. Pure franchising It's a complete business format. Franchising offers major benefits: the experience of the franchiser, the assistance But the franchisee has many constraints [4]and can't develop his/her shop as he/she wants. Goal: work together for mutual success My report agree with the Lison's argument, saying that, for franchisees it's difficult to make their own decisions, especially if they are in a pure franchising system. [...]

[...] Is it better to work in a franchise or in a family-run company[7]? I worked for a franchise as a crew member months - Mc Donald's) but also for a similar job in Germany in a family-run company months - to sell and cook crêpes, baguette and pizza) in Germany. I will describe, thanks to the chart ,below[9], my personal feelings during each of these two jobs and the advantages and inconveniences of each. Vocabulary Bibliography Economics and management of networks franchising, strategic alliances and cooperatives / Editeur: Heidelberg : Physica-Verlag ; London : Springer,cop vol. [...]

[...] It's important for the franchiser to find the ideal franchisee, who really wants to follow the system and who is enough educated to manage a team as well as a shop. Even if they interview many candidates to select the person, sometimes it doesn't work and the brand- image could be damaged. ( The selection of a franchisee is very important and should be made not only on the motivation of the candidate or his capital, but on his capacity to manage a team and his business knowledge. -Workers are also concerned by franchising. [...]