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LU 7 Franchising (Franchise Models: (Company-Owned Unit: (The company…

- - - - Such as:
        
        A strong corporate identity, including trademarks and logos.
        
        A complete system of conducting the business at optimal level.
        
        Hands-on assistance with site selection, store layout & design, sourcing equipment, hiring & training staff & promo activities.
  - - - Does not receive operational support.
      - The Franchiser provides logo's and trade-marks.
      - Does receive national advertising, staff training and initial training.
- - - - The operations-and-procedures manual.
      - Assistance in finding the right franchise facility.
      - Continuous advertising and promotion of the brand.
      - Adequate training of the franchisee and key staff.
- - - - Initial fee, gives access to logos, trademarks, training, technical expertise, operating systems and management procedures.
    - - Paid when the initial agreement comes to an end and the franchisee wishes to renew it.
    - - Management service fee - payed for the right to use the franchisor's name, advice, management systems, marketing and training. This is a monthly fee.
    - - Paid to the franchisor for marketing of the franchise.
- - - - ~ Parties involved in the agreement and their objectives
        ~ Period of the agreement and the right to renew it.
        ~ The right to sell or transfer ownership of the franchise.
        ~Construction and functioning of the franchise - look, hours & feel.
        ~ Description of the exact training and support offered.
        ~ Precise price, commissions and rental fees.
  - - - An Intro to the Franchise:
        ~Covers the general business and related industries the franchise operates in.
        ~The products & services.
        ~Work ethic and strategy's.
        ~Including mission statement & goals.
      - Step-by-step Guidelines:
        ~Address legal requirements.
        ~Location requirements.
        ~Fixtures, fittings, security, staff, promo, colours and control.
      - Production Equipment:
        The equipment that is required and what it does.
      - All details regarding Stock-holding, systems & control, as well as pricing:
        ~Products to be sold should be detailed in exact specifications and customer requirements.
        ~Often the most used section.*
      - The business operation where the franchisee is obliged to meet specific operational standards:
        ~The set standards of service and product quality that the franchises should meet.
        ~General standards of operation.
        ~relates to hours, dress code, maintained premises, security etc.*
      - The accounting & administration system to be used:
        ~Usually the franchisors accounting system.
        ~Franchisee is obliged to invite a certified annual audit.
      - Duty of the franchisor: Provide support & advice.
      - Industrial Relations: Complying to the relevant labour laws.