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Definition  ▪  Benefits  ▪  Examples

 

 

 

 

Franchising is a business model where one company (the franchisor) grants another company (the franchisee) the right to operate a business using the franchisor's established brand, products, and operating methods.

The franchisee pays the franchisor an initial fee and ongoing royalties in exchange for this right.

 

 

 

Business Format Franchising is the purchase of the name, trademark and an ongoing business plan of the parent corporation or franchiser by the franchisee.

Franchising is a business expansion strategy based on a marketing concept, allowing entrepreneurs to utilize an established business model. It's a partnership-based distribution system where new businesses can use an existing business concept for a fee.

Franchising facilitates the distribution of products, services, know-how, and technologies. This system allows for rapid business expansion and brand growth for the franchisor, while providing the franchisee with a tested business model and support.

 

Business Design

Business Model

Diversification

Business Growth 10+

7Ss

Proactive Futuring

Brand Appeal

Example: Brand Appeal of Innompic Games

Brand Enhancement

 

 

Startups

 

Example of a franchising opportunity

WEneurs Forum

 

Mentoring

 

 

 

Synergizing Core Competencies

Through a franchise agreement the owner of certain technical or other expertise who has usually gained a reputation in connection with the use of a trade or service mark (the franchiser) may team up with another enterprise (franchisee) who will bring in expertise of his own or financial resources to provide goods or services directly to the consumer.

The franchiser will ensure, through the supply of technical and management skills, that the franchisee maintains the quality and other standards in relation to the use of the trade or service mark which often require certain standardized features like, for example, a uniform trade dress.

 

Brand Attributes

Name

Logo with Deep Sense

Brand Enhancement

Brand Equity

Brand Management

Examples

Strategic Brand Management

Brand Management on the Web

 

 

 

   

The Main Advantages of Franchising

for both the franchisor and the franchisee

 

 

 

 

Advantages for the Franchisor (the brand owner):

Accelerated growth with less capital: Franchises fund much of the expansion, reducing the need for debt or equity financing.

Faster market penetration: Local operators push into new regions more quickly.

Revenue diversification: Ongoing royalty fees and initial franchise fees create a steady income stream.

Good prospects: Franchisees have a strong motivation to succeed because their investment is at stake.

Economies of scale: Unified purchasing, marketing, and training programs can reduce costs across the network.

Higher brand equity: A standardized model helps increase brand awareness across outlets.

 

Customer Success

SIVA Marketing Strategy

Trust as a Source of Sustainable Competitive Advantage

Credibility Marketing

Brand Ambassadors

Plenipotentiary Company Ambassador

Brand Ambassadors of Innompic Games

 

 

 

Advantages for the Franchisee (the buyer of rights):

Access to a recognized business with proven systems and a track record.

Comprehensive initial training and ongoing assistance in operations, marketing, and management.

Higher likelihood of success: Access to established processes, vendor relationships, and operating manuals reduces trial-and-error.

Easier access to financing: Lenders often favor franchised businesses with a known brand and support structure.

Faster time to break even: Turnkey operations and marketing support can shorten the ramp-up period.

Collective buying power: Group purchasing and negotiated supplier terms can lower costs.

Reduced risk: The franchisor’s tried-and-true model acts as a risk mitigator compared to starting a new, independent business.

Corporate marketing campaigns and national branding support help drive customer traffic.

Franchisors often roll out updates and improvements across the network, keeping the brand competitive.

Exit: Established brands can be easier to value and sell, with ongoing franchise relationships in place.

 

 

 

Registered Trademark

In the international context, a formal licensing agreement is possible only if the intellectual property right you wish to license is also protected in the other country or countries of interest to you.

Trademark registration, in particular, enables you to maximize product differentiation, advertising and marketing, thus enhancing recognition of their product or service in international markets and establishing a direct link with the foreign consumers.

Depending on the nature of business, a franchising agreement with firms abroad, could be a useful alternative way to earn revenue from the trademark abroad as well... More

 

Intellectual Property Management (IPM)

A Trademark as a Face of Your Business

Creating or Selecting a Trademark

Conducting Trademark Searches

Licensing of IPR as a Vital Component of Business Strategy

Use of Trademark and Brand Name