FRANCHISING
Corporation
A business owned by stockholders who share in its profits but are not personally responsible for its debts. Not more than 15, but not less than 5.
Franchise Agreement
Legal, written contract between the franchisor and franchisee which tells each party what each is supposed to do
Franchise Agreement
More specific than the UFOC.
• Specific • Measurable • Attainable • Realistic • Timebound
SMART stands for?
Standard Operating Procedure
SOP stands for?
Single-Unit (direct-unit) Franchise
Simplest and most common type of Franchise.
Uniform Franchise Offering Circular (UFOC)
UFOC stands for?
Business Format Franchises
Use the complete method to conduct the business itself.
• Vission • Mission • Goals • Objective
VMGO stands for?
Franchisee
Who gets the right under franchisor's trademark?
Tony Tan Caktiong
Who is the owner of Jollibee?
Edgar "Injap" Jaruda Sia II
Who owns the Mang Inasal before it sells to Tony Tan Caktiong?
Indirect Competitor
a business that sells a different product or service from yours, but fills the same customer need or want. (coffee vs tea)
Customers
people who buy/purchase goods and services
• AREA DEVELOPMENT FRANCHISE • MASTER FRANCHISE
Two ways a multi-unit franchise can be achieved
Royalty
Regular payment made by the franchisee to the franchisor
Franchise
Agreement or License between franchisor and franchisee
Licensing
Allows licensee to pay for the rights to use a particular trademark.
Disclosure Statement
Also known as UFOC
• Real-Estates • City Mall
Business of Tony and Edgar (Double Dragon Company)
Corporate Combination
Combination of 2 or more companies. (more in profit)
UFOC
Disclosure document provides information about the franchisor and franchise system.
Service
Doing work for others
• Manufacturing • Merchandising • Service
Enumerate 3 kinds of Business
• Personal Service • Recreation Service • Finance
Enumerate 3 types of Service
• Single Proprietorship • Partnership • Corporation • Cooperative • Corporate Combination
Enumerate 5 forms of Business
• Personal Money • Banks • Relatives • Government Assistance • NGO's
Enumerate possible Sources of Cash if you are opening a business
Master Franchise Agreement
Gives franchise more rights than an area development agreement.
Feasibility Study
Must do before opening a business
Multi-unit Franchise
Open and operate, MORE THAN ONE UNIT.
Area Development Franchise
Open more than one unit during a specific time, within specific area.
Cooperative
Operate to help members. Elimate Profit A business that is owned by the members it serves and is managed in their interest.
Franchisor
Person/Company grants the franchisee, right to do business under the franchisor's trademark
Prospect
Possible Buyers
Product Distribution Franchises
Supplier-dealer relationships. Not using the franchisor's method of conducting business.
• Single-Unit (direct-unit) Franchise • Multi-unit Franchise
TWO TYPES OF FRANCHISING ARRANGEMENTS
N-user
The one who consumes the product
Manufacturing
The process of making a raw material into a finished product; especially in large quantities.
• UFOC • FRANCHISE AGREEMENT
Two main franchising legal documents
Direct Competitor
businesses that provide the same or very similar goods or services. (kkopi vs 37)
Merchandising
buying and selling of goods in a business for a profit
Distributorship
contractual relationship with supplier
