FRANCHISING

FRANCHISING (KINH DOANH NHƯỢNG QUYỀN)

1. What is franchising ?

Franchising is formal permission to expand a business od products or services ( from the franchiser’ s perpective)

An opportunity to develop your business under a reputable ( danh tiếng ) brand name ( from the franchisee’ s perpective )

Franchising occurs whwn an entreprise ( franchiser) gives another enterprise ( franchisee) permission to use its brand and operation practises. In return, the franchisee has to pay some fees to the franchiser

2, Why client loves franchising ?

+Prestigious ( uy tín )

+ Familiar ( quen thuộc)

+ Stable ( ổn định )

+ Professional ( chuyên nghiệp)

3. Kinds of Franchise :

+ Products distribution ( Phở 24, Café Trung Nguyên…..)

+ Business model ( Mc Donald’s , Pizza Hut…..)

4. Benefits from buying a franchise :

+ Not alone when building your business, but assisted by a group of professionals

+ Minimize time to star up your business

+ Take the initiative to manage your business to a favorable extent

+ Benefit from the fame ( nổi tiếng ) and prestige of the brand of the franchiser

+ High opportunity of success for using already successful products and operations

+ Take advantage of modern products or services

+ Workforce is trained in accordance with the common standards

+ Assisted in marketing on a large scale

+ Quality is regularly checked and managed

5. How the franchiser can support a franchise

+ Reputation (danh tiếng ): Brand, logo, slogans, certificates….

+ Recruiment and training

+ Materials, products

+ Marketing

+ Quality management

6. Marketing :

+ Use advertising files of the franchiser

+ Advised on local stratgic marketing plan

+ Brand information is communicated in propor documents and media

& Quality management :

+ Facilities

+Training

+ Operation experiences

9 Benefits of franchisers :

+ Accreditation fee : ( Chi phí ban đầu )initial fee for activities to assist a start –up business like : technology transfer, training, administration procedures. Accredutation fee is calculated based on the product package(s) the franchisee

Would like to acquire, franchisee’s size and complexity of technology transfer. After the franchise contact expires, both parties can nogotiate to sign a new contract with the fee is equal to 10% of the initial accrediation fee. Eact contact last 3 years …..

+ Royal fee : ( phí hàng tháng ) : monthly fee based on the franchisee’s sales for maintaining the use of the brand and other support which the franchiser is responsible for

10 Should you become a franchisee ?

+ Entreprise potential ?

+ Your financial health ?

+ Your desire to work in the profession of the franchiser ?

+ Proper location ?

+ Passion and sufficient time to invest

+ Management capabilities

11. Procedures to becomesa franchisee

Phase 1 : application form, busness registration, business plan

Phase 2 : organisation chart, financial demonstration, marketing plan

Phase 3 : signing contract, submit acreditation fee, agree about the beginning plan

( teaching for operating )

( Source : Internet)