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The meaning of affiliation refers to membership in a certain group organization. It can be extended to the commercial field, referring to the franchise of commercial brands.
First, the concept of franchising.
Franchising (chain) is probably the most popular word in the business world today. The companies that carry out the franchise business are also located in all corners of various industries. So, what is franchising?
What are the benefits of franchising? Why is franchising successful? If you don't know these problems, you won't do a good job in the franchise business.
1. The interpretation of franchising by the International Franchise Association.
Franchise is a contractual relationship between the franchisor and the licensee. According to the contract, the franchisor provides the licensee with a unique business concession and provides guidance and assistance in personnel training, organizational structure, operation management, commodity procurement, etc., and the licensee pays the franchisor corresponding fees. Generally speaking, franchising is a business model for franchisors to expand their business and sell goods and services.
2. Characteristics of franchising.
1) Franchising is a business model that uses its own brand, proprietary technology, management model, etc. to expand the scale of operation by combining it with the capital of others. For franchisors, franchising is the expansion of technology and brand value, the cloning of business model rather than the expansion of capital.
2) Franchising is a win-win business model. Only by enabling the franchisor to obtain more efficient development than his own direct operation, and allowing the licensee to obtain more benefits than his own operation, can the franchise be carried out.
3) Franchising is an intelligent form of business organization. Franchising enables the franchisee to fully combine and utilize its own advantages, and maximize the absorption of a wide range of social resources, while the licensee reduces the entrepreneurial risk and entrepreneurial costs such as time and capital.
In short, franchising is a new trend and trend of opening a store and starting a business in the 21st century, and a new driving force to promote future social and economic development, and she will bring new entrepreneurial opportunities and profit prospects to many entrepreneurs.
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Refers to membership in a group organization. It can be expanded to the commercial field, referring to the first joining of commercial brands. Franchise is the continuous contractual relationship between the enterprise organization, or the franchise chain head office and the franchise store.
According to the contract, a unique business privilege must be provided, plus unconditional assistance (personnel training, organizational structure, business management, supply and marketing of goods). And the franchise store also needs to pay a relative reward.
There are many types of franchise business forms, which can be divided into voluntary franchise, entrusted franchise and franchise according to the proportion of capital contribution and business mode.
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"Franchise" means that the franchise head office and the franchisee conclude a contract, and the franchisee will authorize the trademark, commodity and business technology to the franchisee. When the franchisee obtains the above rights, it must pay a certain amount of money to the franchise head office, and according to the guidance, training and assistance of the franchise head office, use the same trademark, use the same goods, services and business technology in whole or in part, and exercise professional division of labor and centralized management of the management team. At the same time, most (or all) of the funds required for the establishment of a franchise store are the responsibility of the franchisee, and the personnel required for the franchise store are in principle the responsibility of the franchisee.
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Joining alone means joining a brand's model and brand concept, including its full set of market product positioning, and customer positioning, including joining the unification of the first also has requirements, mainly a full set of franchise system.
In the definition of franchise, you can only complete all business activities including profit model under the condition of joining the brand, and cannot violate all the regulations of the franchised brand, protect the franchised brand, and be willing to abide by all the articles of association formulated by the franchise headquarters.
Joining is to complete all your operations in an organized and systematic manner, and you need to pay a certain franchise fee or abide by certain franchise rules.
There are many kinds of franchises, depending on where you planted them, you can take a look at them in the encyclopedia. You can also call a few to join ** to consult.
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