Business Information

Archive for the ‘Franchising’ Category

Normally economic benefits for the franchisor payment consist of:

- A lump sum by way of franchising law
- Royalties (a percentage of sales)
- Contribution to fund advertising and promotions.
- Often the franchisor (owner) grants the franchisee products, supplies and services that it must acquire.

Moreover, the franchisee receives:

- Support ongoing
- Participation in corporate advertising programs
- Benefits from economies of scale
- Proven business systems that improve their internal procedures

While franchising is where a mark is successful, this does not mean it is famous, because although the name can be known does not necessarily mean it will be a better business. It takes just all know today (business knowledge) and a correct implementation for the business to be really successful. Read the rest of this entry »

The other day I got the new edition number 33 of the Mass Business magazine, where I found an excellent article that talks about the franchise, so obviously I liked the article is that it is approached from the perspective of our country and that then I give you a summary.

It is a reality that our country is a really competitive as well with a wide range of risks to be taken into account. Focused directly on competitiveness is important to analyze how to survive in a market full of large competitors with far more likely than small employers.

The doubts that trigger this are eg How to overcome the barrier of the lack of distinction? How can we compete with them? For these and other questions there is the possibility of partnering in the form of franchising, a tool to reduce operational costs, increase sales, improve profitability and at some point improve corporate life.

The franchise (Franchising)

The franchises are basically breeding chain systems, which follow a successful business model and where there are two parts. On the one hand, the franchisor owns the brand and with the knowledge about the business and which gives authorization to the second part, the franchisee, in order to commercially exploit that mark.

Author: Dr. Jorge Daniel Blim