8. “A business from essentially consisting an organization with
a market-tested business package centered on a product or
service, entering into a continuing contractual relationship
with franchisee, typically self financed and independently
owner-managed small firms, operating under franchisor’s
trade name to produce and/or market goods and services
according to a format specified by a franchisor”.
(by Currant and Stanworth, 1983)
KAREN DÍAZ
13. “Business for you-self, but no by your-
self”
The franchise has already been proven successful.
Training is provided and greatly accelerates the time to start up a business.
The operating system can be learned and then followed to duplicate positive results.
Brand name recognition – customers already exist and are loyal to the brand.
Location assistance, which can range from finding the right site to sales or rental
negotiation.
Marketing support in the form of national and local advertising
Franchisees can expect to get ongoing support from regional representatives
Discounted purchasing of supplies and goods used in the business thanks to the
power of group buying.
KAREN DÍAZ
14. 1. Requires the franchisee to
follow the rules of
operation.
2. Franchising is less
entrepreneurial than the
stand-alone business.
3. The entrepreneur loose the
creativity.
KAREN DÍAZ