1. FRANCHISING
DIANA ALEJANDRA APONTE
MAURICIO A. CANAL

2. GENERALIZATIONS
FRANCHISING FRANCHISEE FRANCHISOR
FRANQUICIA FRANQUICIADO FRANQUICIANTE

3. DEFINITION
Arrangement here one part (the franchisor) grants
another party (the franchise) the right to use its
trademark or trade name as well as certain business
system and processes.

4. Main points and profits
 Immediate name recognition
 Tried and tested products
 Standard building design and decor
 Training of employees

5. ADVANTAGE
 Reduces the risk for being a proven
concept: a franchise can leverage the
experience of the franchisor in the
bussines and provides some guarantee.
 Support to start the business: this inicial
support should incluide items such as:
help me choose the right local

6. DiSADVANTAGE
 The franchisor has to share your business
with a group of independent traders
 Thefranchisors from abroad prefer to
develop in neighboring countries
 Franchisees
lose much of its commercial
independence

7. CHARACTERISTICS
 The contract is the cornerstone of the
entire franchise system.
 Right to use a trademark.
 Transmission
of the set of knowledge and
experiences that are the Know-how
(know-how)

8. CHARACTERISTICS (Cont.)
 Defining the economic parameters of
access to the franchise network
 original business concept
 Complete and comprehensive initial
training of the franchisee and staff.
 Service and continued assistance to
franchisees

9. TYPES OF FRANCHISING
 According to the rights granted:
Individual Franchise, Franchise and Franchise multiple master.
 According to the subject of the franchise or branch of
economic activity:
Industrial franchise, distribution franchise, Franchise brand or
franchise products and non-exclusive distribution, exclusive
distribution franchise and Franchise conversion
 According to the evolution of the concept, and transmission
rights transferred know-how:
Brand franchise or first generation, business Franchise or
Franchise second generation and third generation format

10. SOME TYPES OF FRANCHISING
 Franchising industry: in this franchise, the franchisee
establishes and operates an industrial, low technological
concepts, consulting, and training brand that gives the
franchisor.
 Multiple Franchising: through this kind of contract rights are
transferred to open several stores in a defined geographic
area, to a single franchisee, which is required to operate
them without giving all the rights purchased from third
 Franchising business or second generation: besides the
assignment of the trademark is granted in the form of
business operation, "recipe", but this advice does not
extend in time, or the depth of knowledge transferred.