logging in or signing up FRANCHISING sudhansu89 Download Post to : URL : Related Presentations : Let's Connect Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Copy embed code: Embed: Flash iPad Dynamic Copy Does not support media & animations Automatically changes to Flash or non-Flash embed WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 2601 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: February 03, 2012 This Presentation is Public Favorites: 1 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript FRANCHISING…….: BY: RANJEET KUMAR VIJAY KUMAR RAHUL SHARMA DIVYAROOP HARSHWAL VAIBHAV JAIN FRANCHISING…….DEFINITION……..: DEFINITION…….. A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance , in exchange for a fee .THE FRANCHISING RELATIONSHIP…...: THE FRANCHISING RELATIONSHIP…... SITE SELECTION ELEMENTS FRANCHISER FRANCHISEE SITE SELECTION OVERSEES AND APPROVES;MAY CHOOSE SITE CHOOSES SITE WITH FRANCHISER’S APPROVAL EMPLOYEES MAKES GENERAL RECOMMENDATIONS AND TRAINING SUGGESTIONS HIRES,MANAGES AND FIRES EMPLOYEES PRODUCTS AND SERVICES DETERMINES PRODUCT OR SERVICE LINE MODIFIES ONLY WITH FRANCHISER’S APPROVAL PRICES CAN ONLY RECOMMEND PRICES SETS FINAL PRICESFRANCHISING IN INDIA……….: There are approximately 1150 national and international business format franchise systems in India The growth rate in franchised units from 2006-07 to 2009-10 was 30 to 35 per cent for the last 4-5 years. Some 500000 persons are employed in business format franchise organizations. Franchising contributed less than 3 per cent to India’s Gross Domestic Product (GDP) in 2007. FRANCHISING IN INDIA……….TYPES OF FRANCHISING……: TYPES OF FRANCHISING…… TRADE/PRODUCT NAME FRANCHISING: IN THIS THE FRANCHISER LICENSING A FRANCHISEE TO SELL SPECIFIC PRODUCTS UNDER THE FRANCHISER’S BRAND NAME AND TRADEMARK THROUGH A SELECTIVE,LIMITED DISTRIBUTION NETWORK. THIS METHOD ALLOW FRANCHISEES TO AAQUIRE SOME OF THE PARENT COMPANY’S IDENTITYSOME EXAMPLES…….: SOME EXAMPLES…….PowerPoint Presentation: PURE FRANCHISING OR BUSINESS FORMAT FRANCHISING: IT INVOLVES PROVIDING THE FRANCHISEE WITH A COMPLETE BUSINESS FORMAT.THEY ARE: LICENCE FOR A TRADE NAME THE PRODUCTS OR SERVICES TO BE SOLD THE PHYSICAL PLANT QUALITY CONTROL PROCESS A MARKETING PLANSOME EXAMPLES……: SOME EXAMPLES……Benefits of Buying a Franchise: Management training and Support - franchisers offer managerial training programs, counseling services Brand Name Appeal - franchisee purchases the right to use a natioanally known and advertised brand name for a product or service Benefits of Buying a FranchisePowerPoint Presentation: 3) Standardized Quality of Goods and Services - quality of goods or services sold determines franchisers reputation National Advertising Programs - advertising campaigns are organized and controlled by the franchiserPowerPoint Presentation: 5) Fianancial Assistance - support the prospective franchisees 6) Proven Products and Business Formats - franchise owner don’t have to build business from scratch 7) Centralized Buying Power - participation in the franchiser’s cenralized and large-volume buying powerPowerPoint Presentation: 8) Site Selection and Territorial Protection - location is critical to successPowerPoint Presentation: DRAWBACKS OF BUYING A FRANCHISEContract term & renewal: Contract term & renewal Franchise contracts are always written in favor of the franchiser. Franchisees also should understand the term and conditions under which they may renew their franchise contracts at the expiration of the original agreement. In the most cases, franchisees are require to pay a renewal fee and to repair any deficiencies in their outlets or to modernize and upgrade them.Unsatisfactory training programs: Unsatisfactory training programs Before signing on with a franchise, it is wise to find out the details of the training program the franchiser provides to avoid unpleasant surprises.Market saturation: Market saturation Franchisees in fast-growing systems reap the benefits of the franchiser`s aggressive growth strategy: market saturation. Franchise growing that rapidly runs the risk of having outlets so close together that they cannibalize sales from one another.Less freedom: Less freedom When franchisees sign a contract, they agree to sell the franchiser`s product or service by following its prescribed formula. This feature of franchising is the source of the system`s success, but it also gives many franchisees the feeling that they are reporting to a “boss.” Highly independent, ”go-my-own-way” entrepreneurs often are frustrated with the basic “go-by-the- rules” philosophy of franchising.Contd….: Contd …. Loss of independence High initial fees High royalties and advertising allowances Contractual restrictions Inapplicable advertising Termination clauses Not receiving promised help Unsuitable products Lack of competitive advantageconclusion: conclusion Whether we have to buy the franchise or not? Whether franchise business is always beneficial? Need to understand the tool 4 A’S concept Affordability,Acceptability,Awarness,Availability You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.