AB_Franchising

AB_Franchising - Franchising Copyright Florida...

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Copyright © Florida International University, Miami, FL 33199 www.entrepreneurship.fiu.edu Franchising Armando Borda R. Abord001@fiu.edu
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Copyright © Florida International University, Miami, FL 33199 www.entrepreneurship.fiu.edu Franchising Definition: “It is a form of business organization in which a firm that already has a successful product or service (franchisor or parent company) licenses its trademark and method of doing businesses to other businesses (franchisees) in exchange for an initial franchise fee and an ongoing royalty”. Franchisor: “The party in a franchise contract that specifies the methods to be followed and the terms to be met by the other party”. Franchisee: “An entrepreneur whose power is limited by a contractual relationship with a franchisor”. Why a Franchisor should be interested in starting a franchise system? Why a Franchisee should be interested in acquiring a franchise system? Does the franchisee is suitable in every occasion?
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Copyright © Florida International University, Miami, FL 33199 www.entrepreneurship.fiu.edu Franchising Situation: Alex was laid off from his work. he was a middle marketing manager in a large service company. Based on his marketing knowledge he wanted to start a new company. His target market medium to large firms that are concerned with customer satisfaction. He want to offer differentiated products that can be used for marketing campaign in emerging countries. The company Trimage 3D can provide him the set of products that he wanted.
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Copyright © Florida International University, Miami, FL 33199 www.entrepreneurship.fiu.edu Franchising Situation: Alex contact Trimage 3D to acquire the franchise. Trimage 3D refer Alex to the Master Franchisee in LA. (Ecuador) He went to Ecuador, visit the master franchisee, assess the performance of the product and decide to acquire the franchise. The Master franchisee offer him the same machine, with one year guarantee at 20% of the cost required for Trimage 3D. How many of you accept the offer? Why? What does Trimage 3D offer? Franchising is not appropriate in:
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AB_Franchising - Franchising Copyright Florida...

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