Franchising is an enterprise organization, or a continuous contractual relationship between franchise chain headquarters and franchise stores. According to the contract, unique commercial privileges must be provided, and unconditional assistance (personnel training, organizational structure, operation and management, commodity supply and marketing) must be added. And franchisees also need to pay relative compensation.
There are many types of franchising, which can be divided into voluntary franchising, entrusted franchising and franchising according to the proportion of capital contribution and mode of operation.
Extended data:
trait
1, there is a franchise owner, that is, the leader of the franchise chain.
2. The leader has a franchise, which can be products, services, business technology, trade names, labels, and other special forces that can bring commercial benefits.
3. Contract is the main link between the leader and the franchisee.
4. Franchisees have the ownership of their own stores, and store operators are the owners of the stores.
To manage the leader's headquarters, the franchisee must operate in full accordance with a series of regulations of the leader's headquarters, and he has no operational autonomy.
6. The headquarters has the obligation to teach franchisees a complete set of business systems such as information, knowledge and technology to complete their business, and at the same time grant franchisees the monopoly right to use specific areas such as store names, trade names, trademarks and service marks, and provide continuous business guidance during the contract period.
7. Franchisees should pay certain paid fees to the leaders, usually including one-time franchise fees, sales or gross profit commission.
8. Leaders have a vertical relationship, but franchisees have no horizontal relationship.
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