Small Business Finance
Franchising - expanding a small business
Contents;
1.Introduction
1.1.1. What is Franchising
1.1.2. Who is involved? 3
1.1.3. How does it work? 4
2. Franchising In Australia
2.1.1. A background on franchising< 5
2.1.2. Growth and future of franchising< 5
2.1.3. Relevance to SME sector 6
2.1.4. Code of Franchising7
3. Organisational and Structural Elements<
3.1.1. Types of Entities 8
3.1.2. Documentation 8
3.1.3. Franchising fees 10
3.1.4. Relationships 10
4. Financing Elements - how to finance your franchise
4.1.1. General 13
4.1.2. Options for finance 14
5. Conclusion 17
References 18
1.Introduction
1.1.What is Franchising?
Franchising is a generic term that describes a way of doing business. In essence a model of business structure that relies on a relationship in which an owner (franchisor) of a business has licensed others (franchisees) to use a business system and trade name to market and sell products/services.
A McDonalds location in Moncton (mountain road). I...
Land Transportation Franchising and Regulatory Boa...
English: Franchising(Fujio food system,ccc,YELLOW ...Thus it is a marketing concept of delivering products and services that can be applied across a diverse range of businesses. The International Franchising Association has developed 75 different categories describing the businesses of its members.
1.2. Who is involved?
Franchising involves two parties:
Franchisor - The franchisor is the initial owner of a business system which has been developed and proven to be a successful method of operating a particular business. As owner, the franchisor has the legal capacity to provide licences to others (franchisees). Typically the owner seeks to expand the business through a relationship with others who have similar objectives.
Franchisee - The franchisee is the party that has entered into an agreement with the franchisor to use the trade mark / business name and business system in a defined outlet or territory.
1.3. How does it work?
Essentially the franchisee has agreed to...