FRANCHISING
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.
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?
• AREA DEVELOPMENT FRANCHISE • MASTER FRANCHISE
Two ways a multi-unit franchise can be achieved
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
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
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.
Franchisor
Person/Company grants the franchisee, right to do business under the franchisor's trademark
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
Manufacturing
The process of making a raw material into a finished product; especially in large quantities.
• UFOC • FRANCHISE AGREEMENT
Two main franchising legal documents
Merchandising
buying and selling of goods in a business for a profit
Distributorship
contractual relationship with supplier