Professional Documents
Culture Documents
Features
1. Right to use the name: Under this agreement the right to use the name transfer to
the franchise holder.
2. Continuous control: Under this to maintain the reputation of business the
franchiser controls regularly the activities of the business.
3. Assistance to franchisee: The franchiser helps the franchisee by way of providing
training, technical help, advertising etc.
4. Separate business: Both parties business are separate from each other.
5. Periodical fees: A franchisee pays a fixed amount for a fixed period in consideration
to the right. It may also be in some other form.
6. Minimum agreement fees: The minimum time period for franchise agreement is
5yrs and after each 5 yrs the agreement has to be renewed. The franchiser can also
cancel the agreement with prior notice also.
7. Written agreements: The franchisee makes a written promise that he will not do
any rival business during the franchisee contract.
BINAYAK ACADEMY,
Gandhi Nagar 1st Line, Near NCC Office, Berhampur
Contact No: 9776486185, 8270407323
brands is at an all-time high. Consumers typically feel more secure frequenting a
business they recognize by name. For the independent business person, it has
become difficult to compete against companies that have significant resources to
develop and promote their brand. Franchising permits an individual to benefit
from the collective power and growth of the franchise network, which in turn
leads to greater name recognition and competitive advantages for each
individual franchisee.
8. Increased advertising and marketing budget: Franchisees may be required
to contribute a percentage of their gross sales (or a set fee) to an advertising
fund administered by the franchisor. This enables the franchisor to advertise in
regional and/or national media for the benefit of the franchise network.
Disadvantages of franchising
Lack of independence
Inflexibility