Please enable JavaScript.
Coggle requires JavaScript to display documents.
LU7 Franchising (Continued): (Ongoing Franchisee Support: (Training: (A…
LU7 Franchising (Continued):
Ongoing Franchisee Support:
Training:
A training schedule should be available for a few day to several months.
Training program should be planned in advance.
Franchisee & staff should take interest.
Group-purchase Arrangements:
If the franchise involves a product, the franchisor is likely to be the supplier.
The franchisee should derive benefits in the form of savings or profits.
Marketing & Advertising:
Most important ongoing benefit.
Financed through advertising fees.
Trouble-shooting:
Prompt assistance will cement a franchise relationship.
A relief manager can be used to take a franchisees place if the franchisee takes leave.
Provide technical support.
Market & Product Research:
The franchisor should use network to gain information and formulate it into a strategy to build up the brand name of the network.
Franchisees must monitor customer and competitor activity through the use of questionairs.
Administrative System:
The franchisor must help the franchisee set up a checklist.
All aspects of the daily running of the business - cash float, cleaning, wiping tables, fresh water for coffee machine, etc.
Communication:
Adds to the success of the total network through the exchange of ideas.
Franchisor can enhance this by providing formal & informal channels of communication.
Competition Legislation & Franchising:
Price-setting Arrangements:
No franchisors can give penalties to franchisees for not complying with recommended prices.
The prices need to be agreed on.
Tying Arrangements:
Goods and services must meet the correct standards agreed upon.
Exclusive Dealing:
The Competition Commission has recognized that the quality of goods relates to the companies trade mark. Standards need to be maintained.
Territorial Restrictions:
The franchisor will give the franchisee sole rights to a location.
Causes Protecting Know-how & Other Intellectual Property:
Protecting the franchisor and the brand.
International Franchising:
Assess Feasibility:
Is the idea desirable overseas.
Will is be successful.
Is the franchise strong enough.
Budget, culture, staff & skill set.
Develop a Master License:
It is a license that gives a company the rights to open up in an entire country instead of territorial rights.
Assess the Country:
Is there a big enough population?
Will people buy the product?
Will you make sufficient margins?
Is it suitable for the country?
Investigate the License:
Does the person wanting the license have the ability to make the franchise work?
Does the business ethics appear to work with those of the franchisor & its network?
Will they be willing to uphold the network?
Involve Support Systems:
Legal professionals who know the laws of a country.
Training consultants with international links.
Financial consultants with expertise in international accounting principles.
FASA