Submitted by: Submitted by Cjomka
Views: 95
Words: 3728
Pages: 15
Category: Business and Industry
Date Submitted: 11/06/2013 07:44 AM
Contest
Introduction…………………………………………………………………….3
1. What is Franchising?.......................................................................................4
2. Advantages and disadvantages of franchising……………………………….5
3. Types of franchising…………………………………………………………8
4. Franchising in Ukraine………………………………………………...…….9
Conclusions……………………………………………………………………15
A List of literature used………………………………………………………..16
Introduction
Franchising : This is simply the practice of using another firm’s successful business model to start yours. For the franchisor, the franchise is an alternative to building ‘chain stores’ to distribute goods that avoids the investments and liability of a chain. The franchisor’s success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. Also franchising is also be about services rendered to customers.
Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a franchisee, to use the supplier’s trademark and distribute the supplier’s goods. In return, the operator pays the supplier a fee.
Terms & Agreements : A franchise usually lasts for a fixed time period (broken down into shorter periods, which each require renewal), and serves a specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for the purpose of ownership. It is classified as a wasting asset due to the finite term of the license. A franchise can be exclusive, non-exclusive or ‘sole and exclusive’.
In Ukraine there are lots of international...