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Franchise News - Article
01.09.2008
Getting to know what is really franchising… (part 1)
When you enter the franchising world, there is a jargon…You’ll quickly get
used to it, here are some words and expressions to know. Here is the first of
three articles in three days.
First of all, « Franchising contract », it’s
the document that governs the obligations between the franchisor and the
franchisee. A contract must also be carefully read and well understood by people
signing and maybe also shown to a jurist.
The « franchisor » is the person
or the company that brings for other people or companies a brand, a store or
company concept and a know-how in exchange of a financial counterpart and/or
supplying and/or exclusivity allowing them to show the profit of the
authorization and the helps it gives.
The « franchisee » is the person or the company that uses the brand, the
concept and the know-how and engages to respect the counterparts above. He keeps
an independent CEO but gets the benefit from a success, an experience, a
know-how, and is fully responsible of the well-being of his business.
The « master franchisor » is sometimes the name given to the franchisor that
concedes to another person the development of the brand in an area or a country.
This person is called “master franchisee” and can be a person or a company that
got the right to develop a franchise in an area or a State.
The entry fee is an amount to pay to enter a franchising network as a franchisee. The amount can vary and covers diverse fees.
To follow next Monday
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