Introduction to Franchising
Franchise is a method of doing business between two independent parties, , the first party “franchisor” grants the other party “franchisee granted” intellectual and industrial property rights or technical knowledge to produce a commodity or distribute its products or services in accordance with the instructions of the concessionaire and under his supervision exclusively in a specific geographical area and for a period of time Specific with his commitment to provide technical assistance in addition to a number of other services such as advertising, training and logistical support for a fee or percentage of total sales.
Activities that can be managed by a franchise system:
- Retail markets and retailers
- Restaurants, cafes, hotels and any activities related to food and hospitality
- Advertising, shipping, home services and computer services
- Travel, tourism, real estate marketing and hotel agencies
- All commercial, industrial, service and agricultural businesses that are difficult to account for all of them.
Benefits and benefits of the Franchise system:
- Expansion and rapid spread in target markets at no high cost
- Reducing the financial, technical and administrative burdens of expanding into new markets with the capital of the concession-owner
- Increase the material return of the amounts paid by franchisee, whether in the form of franchise fees or for the products and services purchased.
Consultancy services for franchisees
- Evaluating the administrative and organizational structure of the company’s operations, activities and departments
- Drafting and writing of franchise documents, business procedures and contracts regulating the granting of excellence
- Preparation of advertising materials, training, control and control systems and marketing tools
- Determining the proposed budget for the requirements for building the franchise system