Franquicias

URP - NG1009 - FRANCHISING Semester 2010/02

06/10/10

Universidad Ricardo Palma

Global Business Administration

FRANCHISING
X Ciclo / Semestre 2010-1

Week Nr. 6 & 7

URP - Global Business Administration X Cycle - Academic Semester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

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5 TYPES & STRUCTURES OF FRANCHISE
URP - Global Business Administration X Cycle - AcademicSemester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

FRANCHISE STRUCTURES
MASTER FRANCHISING AREA FRANCHISEE UNIT FRANCHISEE

URP - Global Business Administration X Cycle - Academic Semester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

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Course Class Presentation Unit Nr. 5 Weeks Nr. 6 & 7

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URP - NG1009 - FRANCHISING Semester 2010/02

06/10/10

MASTERFRANCHISING
The main FRANCHISOR gives the right to the MASTER FRANCHISEE for certain territories, states or countries. Where the right is given in a territory, the MASTER FRANCHISEE has the right to set up a SUB-FRANCHISING system with AREA FRANCHISEEES or UNIT FRANCHISEES The main FRANCHISOR imposes its conditions for sub franchising : sub-franchising How many outlets to be opened within certainperiod of time Preparation of supporting system for sub-franchise programmes Criteria of selecting sub-franchisees and their partners, etc. The MASTER FRANCHISEE has the choice not to practice subfranchising and expand the business on his own by opening outlets that are fully owned by him in his specific territory

URP - Global Business Administration X Cycle - Academic Semester 2010/02 -FRANCHISING Professor : Daniel NABONNE, MBA

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AREA FRANCHISING

Given the territorial right by the FRANCHISOR or the MASTER FRANCHISEE EXCLUSIVE RIGHT to fully operate its business on its own without involving any sub-franchise. The AREA FRANCHISEE is also expected to follow the outlet development schedule as being outlined by the FRANCHISOR or the MASTER FRANCHISEE . Otherwise, the right couldbe transferred to other party.

URP - Global Business Administration X Cycle - Academic Semester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

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UNIT FRANCHISING

An individual entrepreneur, or a small company, holding the right given by the FRANCHISOR or the MASTER FRANCHISEE to operate a specific franchise business in a specific location or premise only. Not allowed to practicesub-franchise. Usually allowed to own more than one outlet depending on its business performances.

URP - Global Business Administration X Cycle - Academic Semester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

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Course Class Presentation Unit Nr. 5 Weeks Nr. 6 & 7

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URP - NG1009 - FRANCHISING Semester 2010/02

06/10/10

TYPES OF FRANCHISE
4 main types of franchiseProduct Distribution Franchise Manufacturing Franchise Business format franchise Management franchise.
URP - Global Business Administration X Cycle - Academic Semester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

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RISING UP OF BIG NAMES IN FRANCHISE !!!

URP - Global Business Administration X Cycle - Academic Semester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

8Early Franchise Entrants

1898 - Automobile Manufacturers Division of responsibilities : - Manufacturers - design & production - Dealers: sales & service
URP - Global Business Administration X Cycle - Academic Semester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

Course Class Presentation Unit Nr. 5 Weeks Nr. 6 & 7

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URP - NG1009 - FRANCHISING Semester 2010/02

06/10/10Coca Cola Company

1886 : coca-cola invented 1899 : Thomas & Whitehead 600-word contract promised to open a bottling plant 1901 : no capital to open the bottling plant …? 1919 : 1,000 franchised Coca-Cola bottlers
URP - Global Business Administration X Cycle - Academic Semester 2010/02 - FRANCHISING Professor : Daniel NABONNE, MBA

Gas Stations

1930 s - Depression Era Franchising 1930’s...