Retail franchising

Presented by: Monika heda (roll no.15) Megha laddha (roll no.24)

MEANING OF RETAIL FRANCHISING

The root of the word Franchising can be traced back to the French word

Franchise, which means to grant powers to a peasant or serf.

The English verb to enfranchise also means to free from slavery, bondage, legal obligation. In the middle ages, a franchise was a privilege or a right.

At that time, the king would allow business to be conducted on his land. In
essence, the king was giving someone the right to a monopoly for a certain type of commercial activity.

DEFINITION OF RETAIL FRANCHISING

According to Websters Dictionary: Defines franchise as1. A privilege or right granted a person or a group by a government, state, or sovereign. 2. Authorization granted by a manufacturer to a distributor or dealer to sell his products.

According to the International Franchise Association:

A franchise is the agreement or license between two legally independent parties which gives:
A person or group of people (franchisee) the right to market a product or services using the trademark or trade name of another business (franchisor). The franchisee the right to market a product or services using the operating methods of the franchisor. The franchisee the obligation to pay the franchisor fees for these rights. The franchisor the obligation to provide rights and support to franchisees.

ROLE OF THE FRANCHISOR AND FRANCHISEE

Functions Site selection Design Employees Products to be sold Franchisor Oversees Provides prototype design Training Decides Franchisee Own or select with approval Incurs the cost Hires, supervises, pays Stocks on consignment or

buys and can change the

product mix only with approval Prices Advertising/ Promotions Brand Building Sets/ Recommends Determines at national level Builds at a national level Follows Suggests local requirements Follows requirements

TYPES OF FRANCHISING
franchisor

Master franchisor

Regional franchisor

Unit franchisee

Unit franchisee

ADVANTAGES OF FRANCHISING
Low

risk

Growth

Ease

of Financing and Operational Support

Advertising

DISADVANTAGES OF FRANCHISING
Royalty/ Lack Loss

Fees

of Control of goodwill of the brand

Fear

of termination

TOP 10 INTERNATIONAL FRANCHISES

Rank Company

1.
2. 3.

7- Eleven inc
Subway Dunkin; Donuts

4.
5. 6. 7. 8. 9. 10.

Pizza Hut
McDonalds Sonic Drive in Restaurant KFC Corp Inter Continental Hotel Group Dominos Pizza LLc Re/ max Intl Inc

Thank you