SMALL BUSINESS FRANCHISING ppt

The partners in a franchise agreement are the Franchisor, who grants the franchise licence to the Franchisee, who invests in it. Remember, a franchise is NOT an independent business. The franchisee buys the opportunity to run a business based on the franchisor’s established operational methods, often detailed in an Operations Manual. These methods ensure that all the products and services offered by the franchisee conform to consistent quality standards.
An Operations Manual eliminates the need for the franchisee to create a strategic plan on how the business is run. The business logistics, such as marketing, product assembly, service delivery, accounting, store layout, employee recruitment and training, are all mapped out. Most franchisors provide extensive training to the franchisee to help ensure that the business is run according to proven methods, making it more likely to succeed.