John Reese Report
What is the difference between a single unit franchise and a master franchise? Single unit Franchising is the most common and direct form of franchising where an individual is required to invest in establishing and operating one location using his own hands-on skills. In a Master franchise relationship the investor obtains the rights for a specific country or region, empowering the master franchisee to provide the full range of products and services of the franchisor through sub-Franchising, in just the same way that the franchisor runs its own business.It would probably be cool if individuals could buy a single pixel each, in practice, it wouldn’t so effective.
What is Business Format Franchising? In business format franchising, the franchisor licenses the franchisee to use and/or sell the franchisor’s product, goods, service and trademark and use its business technique. The franchisor also teaches the franchisee the entire business format including marketing, selling, inventory, accounting and personnel procedures. Furthermore, the franchisor provides support via training and communications for the duration of their business relationship.The idea is simple: to try and make money by selling 1,000,000 pixels for $0.25 each. In all honesty, my main motivation for doing this is to raise money for my kids’ college funds, allow my wife to go back to school, and generally supplement our income.
Why do I have to follow the franchisor’s standards? By following the franchisor’s business practices and meeting its standards, franchisees can consistently provide customers with quality goods and services which guarantees uniformity of operating procedures and even sales techniques, which in its turn strengthen the corporate image of the franchised stores and provides the franchisees with an opportunity to focus on increasing sales and profit levels.
What is the difference between a master franchisee and an area developer? In a master franchise relationship, the franchisor grants the right to an indigenous business entity or individual (master franchisee) who must understand and develop the business concept in the host country or region, establish a number of successful and profitable operating units and grant franchise rights directly to indigenous franchisees through sub-franchising.Simple location criteria for a retail store location for example, must include good population density, good visibility of the store from distance, easy accessibility, reasonable annual rent, good businesses clustering, sufficient foot traffic, potential growth & development, presence of land marks, major trades and famous brand names.
What is the Uniform Franchise Offering Circular – (UFOC) ? Disclosure Document? A statement of information revised to the current fiscal year that reveals to the potential franchisee information pertinent to the franchise and the franchisor.In business format franchising, the franchisor licenses the franchisee to use and/or sell the franchisor’s product, goods, service and trademark and use its business technique. The franchisor also teaches the franchisee the entire business format including marketing, selling, inventory, accounting and personnel procedures. Furthermore, the franchisor provides support via training and communications for the duration of their business relationship.Whether you are interested in cars or trucks, foreign or domestic, we are your place. Advertise your parts or accessories for Honda, Ford, Chevrolet, Toyota, or whatever make and model your automobile. I take your privacy as seriously as mine. I guarantee I will never share or sell your contact information or email address with anyone.
Why do I have to pay marketing and/or advertising fees/levies? Building recognition is an essential and ongoing objective of any franchise system and is designed to benefit everyone involved in the franchise relationship. It is important to understand that marketing contribution by the franchisee must be fully used to the benefit of all franchisees and therefore is not considered to be true income to the franchisor.Franchising means spreading the risk through multiplying the number of locations through other investors. That means faster network expansion and a better opportunity to focus on changing market needs, which in its turn means reduced competitive effects.
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