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What is franchisor business plan

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But the fierce conflict that unfolds is probably not entirely unfamiliar for franchisors and franchisees out there. Ray Croc claimed the secret to his multi-million-dollar success was persistence. A franchise business consists of franchisors and franchisees. Franchisors are the owners of a name, logo, and business model that they allow third party, local, independent investors — the franchisees — to use in exchange for a royalty fee. As part of the deal, both franchisors and franchisees have contractual obligations towards each other to help set both parties up for success.
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Franchisor and Franchisee: The Guide to a Successful Relationship

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What is a Franchise? | International Franchise Association

The franchise business model is not new. In fact, franchising is an ancient distribution model that dates back to the middle ages and ancient China. Modern-day franchising is believed to have started with Benjamin Franklin, who in entered into the first franchise agreement with Thomas Whitmarsh to provide printing services in Charlestown, South Carolina. In the early s, Isaac M. Singer again looked to the franchising model to distribute the Singer sewing machines.
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Franchise Basics

Management, organization, and administrative policy Managing the marketing process Sales and marketing research Managing the operations process Location and site selection Accounting practices and fiscal responsibilities deemed appropriate, along with the realistic financial projections Based on the strategy to be followed and the market conditions anticipated; management information systems And legal documentation for determining the franchisor- franchisee relationship and anticipated activities of each party Includes disclosure documents, recruitment and advertising brochures, and franchising agreements and contracts. The business logical flow of topics: The objectives of the franchisor firm The initial capital and expected investment required of a potential franchisee Personal and other qualifications a potential franchisee must have Training provided by the franchisor to the franchisee Anticipated benefits and responsibilities of becoming a franchisee Contains elements of the following items: Operations manual Financial and bookkeeping systems Advertising and promotional packages Sales manual The franchisor or franchisee support package Training manual Contain sufficient information to enable either a franchisor or a franchisee to make a go or no go decision. The six content sections of a feasibility study: Executive summary Marketing segment Management segment Finance, accounting, and taxes Legal requirements Appendix Executive summary It tells the story of the franchise venture and sparks the interest of any outsiders. This summary must not be more than three 3 pages.
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While doing this you need to bear in mind, that franchisor must serve and create value both for franchisees directly and for end customers through its franchisees. Therefore, it is important to reflect this duality while formulating mission and vision. Then you must proceed to describing initial long-term business goals. Generally, when formulating business vision, mission and long-term goals, do your best to answer these questions complexly:.
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