Upload
martin-belan
View
227
Download
0
Embed Size (px)
Citation preview
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 1/10
NEGOTIATING FRANCHISE
AGREEMENTMartin Belan
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 2/10
TABLE OF CONTENTS :
1. Definition and types of Franchising
2. Main characteristics of the Franchise
3. Structure and content of Franchise
4. Franchise Agreement
5. What each party seeks in Franchise agreement
6. Why is Franchising becoming so popular?
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 3/10
DEFINITION:
Franchise Agreement: Legal agreement,document signed between two parties (franchisor,
franchisee) from which an agreed duties,
responsibilities and expectations result for both
Franchising: the practice of using another firm's
successful business model
TYPES OF FRANCHISING:
Job/Service : cosmetic salons, hairdressers
Property/Product: restaurants, retails, butiques
Investment: Hotels, Car rent
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 4/10
MAIN CHARACTERISTICS OF THE
FRANCHISE
Registered Trademark
Standardized franchise unit
Franchise agreement
Franchise Manual (know-how)
Territorial exclusivity
Support of the franchisee
Franchisee is a legal and accounting independent
entity
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 5/10
STRUCTURE AND CONTENT OF FRANCHISE
Franchisor gives to the Franchisee:
�Right to use trademark
�Know-how
�Overall design and look
�Training, Experiences, Consultancy
Franchisee gives to the Franchisor:
�Start-up fee
�
Royalty fee (if It·s part of an agreement)�Advertising fee if it·s part of an
agreement
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 6/10
FRANCHISE A GREEMENT
No exact pattern
It is not regulated in Commercial Code or Civil
code
The driving force is a balanced partnership
Every F.A. is different due to different conditions
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 7/10
WHAT EACH PARTY SEEKS IN F.
AGREEMENT
Franchisee:
training the franchisee and his staff
supply goods and / or services
responsibility for advertising, marketing and
promotions
assistance with the location and acquirement of the
property and conversion to a franchised outlet
assistance with the set up in business
improvement, enhancement and development of the
business system
provision of certain support management and possibly
accounting services
Protection from any trademark infringement by third-
parties
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 8/10
WHAT EACH PARTY SEEKS IN F.
A GREEMEN
Franchisor:
Monitoring of the performance of the franchisee
Protection from unfair competition
Protection of the Franchisors intellectualproperty
Impose obligations and restrictions on the
franchisee with regard to the exercise of the
rights granted by him to the franchisee
8/7/2019 Negotiating Franchise agreement
http://slidepdf.com/reader/full/negotiating-franchise-agreement 9/10
WHY IS FRANCHISING BECOMING SO
POPULAR?
Benefits to the Franchisor:
Competitive advantage-faster expansion, stable
and faster sales, more franchisee·s better position
on the market Cut the costs and risks-less administrative
personal
Benefits of the Franchisee:
Better relationship with the supplier Proven business model means lower risk of failer
Better access to loans, leasing and insurance