Business Format Franchising Also Known As
Under this format the focus is entirely on the products that are being manufactured or supplied by the franchisor for the franchisee not the system of doing business. Business format franchise is an arrangement where a franchisee receives in addition to the right to sell goods or services the franchisers designs quality control and accounting systems operating procedures group advertising and promotions training and in case of hotels and travel agencies worldwide reservation system.
But there are two different types of franchising that each have their own pros and cons.
Business format franchising also known as. A franchise is a type of business that is operated by an individual s known as a franchisee using the trademark branding and business model of a franchisor. Business Format Franchising BFF. In this business model there is a legal and commercial relationship between the owner of the company the franchisor and the individual the franchisee.
Traditional franchising and business format franchising. A business format franchise is almost exactly what it sounds like when everything is said and done. Franchise opportunities these days are usually known as a business format franchise.
This type of franchise includes not only a product service and trademark but also the complete method to conduct the business. Unless you are considering opportunities in certain specific industries the business format franchise generally reigns supreme. Franchising refers to the business expansion method of licensing the rights to sell products and services to franchisees.
Where implemented a franchisor licenses its know-how procedures intellectual property use of its business model brand and rights to sell its branded products and services to a franchiseeIn return the franchisee pays certain fees and agrees to comply with certain. There are two different types of franchising product franchising and business format franchising. A business format franchise is a franchising arrangement where the franchisor provides the franchisee with an established business including name and trademark for the franchisee to run independently.
The business format franchising also identified as a name and process franchise features a broader and ongoing relationship between the franchisor and the franchisee wherein aside from granting the right to use the name and market the products and services of the franchisor the franchisee is also provided a complete plan for managing and. Franchising is a continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing training merchandising marketing and managing in return for a monetary consideration. The primary alternative to a business format franchise is what is now known as a traditional product distribution franchise.
This is one of the key aspects of a business format franchise. But there are two different types of franchising that each have their own pros and cons. Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion.
Franchising is an arrangement in which the franchisor gives the franchisee the right to distribute and sell the franchisors goods or services and use its business name and business model for a specified period and possibly covering a geographical area. A product franchise is a franchising agreement where manufacturers allow retailers to distribute products and use names and trademarks. If this sounds like every franchise opportunity you have considered you are probably right.
Traditional franchising and business format franchising. The second common type of franchising relationship is traditional franchising also known as product distribution franchising. A franchise occurs when a business the franchisor licenses its trade name the brand and its operating methods its system of doing business to a person or group the franchisee that agrees to operate according to the terms of a contract the franchise agreement.
Product franchising also known as trade name franchising is that type of franchising wherein a manufacturer grants a franchisee the right to sell its products but with no method of doing business. In standard business format franchise structures a franchisee will be granted a license by the franchisor to make use of their principal trademark. Franchising is a form of marketing and distribution in which the franchisor grants to an individual or company the franchisee the right to run a business.
Traditional franchising also known as product distribution franchising is found most commonly in bottling gasoline and automotive industries. Business format franchise. Traditional Franchising Traditional franchising also known as product distribution franchising is found most commonly in.
