What are the benefits of acquiring a franchise?

1.Benefits of franchising for franchisors.

Since each franchise branch is funded by the licensee, the financial risk of the franchisor is shared, and the franchisor is able to use the grantee's funds to develop his own business. The franchisor can concentrate on the development of the business, improve the level of enterprise management, and improve management efficiency. The franchisor can grow the business at a faster pace, without financial constraints, and can achieve high returns with minimal reinvestment.

It is more convenient for franchisors to concentrate resources on what they are good at, so as to enhance the competitiveness of franchisors while improving their core competitiveness, and reduce costs while increasing revenue. The increase in the number of purchases and sales will greatly reduce the cost of the franchisor. Therefore, for the franchisor, it is a multi-pronged thing.

Moreover, when the business is promoted to different regions, the licensee's local familiarity and knowledge can be used to better remove the barriers to organizational expansion caused by regional policy differences.

If the resources of others are properly utilized, you can quickly complete and develop the business, for the franchisor, the franchisor only needs to use the least risk and capital management resources and development of the enterprise, can be developed in the country, and even the world.

2.Benefits of franchising to licensees.

The licensee can quickly acquire the necessary skills and knowledge through the franchisor's intellectual property resources. Thanks to the use of the franchisor's patents, trademarks, service marks, names, copyrights and know-how. The licensee can benefit from the franchisor's reputation for the product or brand that has been established in the minds of consumers long ago.

3.What are the benefits of franchising for society?

Franchising can offer a better product or service. The collaboration of professional division of labor and the joint operation of the franchisor and licensee can give full play to the advantages of both parties, so as to jointly create product or service quality.

Better, better performing, more technologically advanced products. The spirit of cooperation has been promoted, so that resources can also be rationally allocated in society. It is the core idea of all outsourcing activities, including franchising, that each enterprise and individual engages in the work that they are good at, so the phenomenon of unreasonable allocation of resources can be solved in outsourcing activities.

Franchising can also increase employment, and expanded businesses create new jobs.

The above is the relevant content of what qualifications need to be obtained by a franchise, from the above content, we can see that the qualifications of investment promotion are not simple, the above content has been introduced in detail what qualifications need to be met to join the investment, you can take a good look at the above content. If you have any other questions, please feel free to visit Yizhi Franchise for free consultation.

One-of-a-kind franchise has the answer for you:

For the franchisor, the advantages of franchising are mainly manifested in:

1. The franchisor can achieve centralized control, expand the scale and earn profits; Moreover, it can avoid the high capital risk of realizing the control of the enterprise, and can do "hands-off shopkeeper" without taking care of the daily operation of the enterprise.

2. By increasing the scale of franchise stores, the franchisor can extend its tentacles to all corners of the industry and develop a business that the enterprise has not yet involved, and the cost is almost zero.

3. The labor cost overwhelms the franchisee, and the franchisor does not participate in the franchisee's employee management, so there are relatively few employee problems to be dealt with.

4. The franchisor can establish a sales network with the help of franchising to expand the market share of products; And it will not be limited by funds, and can quickly expand the scale and shape the brand at the lowest cost.

5. Since the franchisee is responsible for its own profits and losses, it will strive to do a good job in store management, which solves the problem of the incentive mechanism of the franchisor.

Legal Analysis: A franchise refers to a privilege granted by a competent authority to an individual or legal entity. Franchises, which usually come in two forms:

First, it is authorized by the first organization to allow specific enterprises to use public property, or enjoy the right to operate a certain franchise business in a certain area, such as allowing airlines to use state-owned airport facilities to operate passengers and freight on the routes specified by the first organization.

Legal basis: Regulations on the Administration of Commercial Franchises

First in order to regulate commercial franchising activities, promote the healthy and orderly development of commercial franchising, and maintain market order, these regulations are formulated.

Article 2 Engaging in commercial franchise activities within the territory of the People's Republic of China shall comply with these Regulations.

Article 3 The term "commercial franchising" in these Regulations refers to the business activities of enterprises (hereinafter referred to as franchisees) that have registered trademarks, enterprise logos, patents, proprietary technologies and other business resources, licensing their business resources to other operators in the form of contracts, and the franchisee shall carry out business activities in accordance with the contract under a unified business model, and pay franchise fees to the franchisor. Units and individuals other than enterprises shall not engage in franchising activities as franchisors.

Before the implementation of these Regulations, the franchisor who has been engaged in franchising activities shall, within one year from the date of implementation of these Regulations, file with the competent department of commerce in accordance with the provisions of these Regulations; and where the filing is not made within the time limit, punishment is to be given in accordance with the provisions of Article 25 of these Regulations. The provisions of paragraph 2 of Article 7 of these Regulations shall not apply to the franchisors provided for in the preceding paragraph.

First, the commercial franchise application procedure.

Permitted operation means that through the signing of the contract, the franchisor will have the right to grant others the use of trademarks, trade names, business models and other business resources, to the franchisee to use, the franchisee in accordance with the contract to engage in business activities under the unified business system, and pay the franchise fee to the franchisor. The original blank electronic file of the sample of the franchise contract. In addition, the sample contract shall contain a cooling-off period clause and the franchisor shall submit the following documents and materials to the competent department of commerce for the record:

1) A copy of the business license or a copy of the enterprise registration (registration) certificate;

ii) Sample franchise contract;

c) Franchise Operation Manual;

4) Market plan;

5) A written commitment showing that they meet the requirements of Article 7 of these Regulations and relevant supporting materials;

6) Other documents and materials stipulated by the competent department of commerce.

Second, common commercial franchise filing precautions.

1. Yes, the franchisor must be an enterprise with registered trademarks, corporate logos, patents, proprietary technology and other business resources.

2. There is a contractual relationship between the franchisor and the franchisee, and the two parties determine their respective rights and obligations by entering into a franchise contract.

3. The franchisee shall carry out business under a unified business model, which is reflected in all aspects, such as management, quality control, etc., to the decoration design of the store and even the setting of signs.

4. The franchisee shall pay the corresponding fees to the franchisor. The business resources owned by the franchisor have generally been developed and accumulated for a long time and have high commercial value.

Local competent departments of commerce should continue to strengthen the implementation of the "Regulations", supervise and inspect enterprises, personnel, intermediary platforms, etc. that carry out commercial franchise activities in the local area, and vigorously rectify the order of the commercial franchise market. For enterprises that do not take the initiative to file, do not file in good faith, and do not submit annual reports on time, they should be interviewed and rectified; Those who refuse to make corrections should be punished and publicized in accordance with law; Leads on problems discovered by other departments in the course of administrative supervision or judicial adjudication should be promptly investigated and handled.

Franchises.

It is a civil right vested in the franchisor.

Specific forms may include: the right to use a licensed brand, the right to use exclusive resources, the right to use the licensed system, and the right to use a licensed intangible asset.

The right to use and dispose of the product, the right to use the licensed product and the property vested in the product, etc.

According to China's current franchise system, it is divided into ** franchise rights, commercial franchise rights, etc. Generally speaking, the franchise is issued by Xianbu through a public procedure, while the commercial franchise is publicly granted to the franchisee (enterprise or individual) by the franchisor (generally referring to the enterprise) through the prescribed procedure.

Franchise Circle - Franchise services.

[Legal Analysis].

1. Franchise refers to the right of an individual or enterprise (i.e., the franchisor) who has the ownership of the business system of unique products, equipment, patents or service marks to other individuals or enterprises (known as licensees) to carry out inter-industry business activities in a pre-specified manner in a specific area and period.

2. Franchise rights generally include three different forms: trademark franchise rights, product franchise rights, and business model franchise rights.

3. There are two ways to obtain a franchise, the first is the state, or the first is to introduce relevant policies to hand over some special industries or special products to some enterprises to franchise through the camp, which is a friendship that needs to be applied for, and the other way is that there are some enterprises will. The intellectual property rights, patent rights or trademark service products of their enterprises are provided to units or individuals for use for a fee or free of charge, and it is also a prudent way for franchising, and bidding is not the only way.

[Legal basis].

Measures for the Administration of Municipal Public Utilities Franchises》 Article 12 "The concession period shall be determined according to the characteristics of the industry, scale, mode of operation and other factors, and shall not exceed 30 years. "The maximum term of the concession is 30 years, but it is usually 10 years, unless the licensee is seriously unable to perform its obligations, but will apply for an extension.