Lesson 2-3

62問 • 1年前

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allows the franchisee to use its trademarks and distribute its goods

Franchisor

• the primary structure that holds the franchisor-franchisee relationship; • an essential document that defines and stipulates the extent of actions and conditions of the business; • the legal basis of the relationship.

Franchise Contract

The Franchise Contract should indicate provisions that pertain to the following:

1. Termination 2. Transfer 3. Renewal

Common grounds include but are not limited to, the franchisee's failure to pay royalties, breach of contract, or engaging in Conduct that harms the brand or franchise system.

Termination

The franchisor will send the franchisee brochures and other materials, and most likely request the franchisee to complete a questionnaire

The Franching Process

requires that this document be provided to disclose detailed information about the franchiser at least ten days prior to any franchise purchase.

Federal Trade Commission (FTC)

according to the Philippine Franchise Association (PFA) Franchise businesses in the country enjoy a higher gross rate of ___% compared to the general retail industry's ___%,

90, 25

an ideal business option for first-time entrepreneurs

Franchising

Contact different companies that offer a franchise in your preferred industry. It permits you to know more about the prerequisites, costs, and other important details about running a specific franchise trade

Reach Out to Your Target Franchisors

Find your target franchisors' contact data on Their official site, usually on the Franchising or Franchise With Us page. A few franchisors (particularly those without website) can reached through their Facebook page

Talk to franchisors directly

Franchise expos are a one-stop- shop for a trying franchisee. Companies all over the Philippines (and indeed overseas) assemble in one place to offer franchising opportunities. Make the foremost of your-franchise expo participation, so you can choose the companies worth investing in

Attend a Franchise expo

A simple sketch or a Google Map attachment or screenshot of photos of your chosen business location.

Map of your proposed site

Make your resume as detailed as conceivable, highlighting your business experience, in case there's any

Resume or curriculum vitae

Other Business Document Requirements:

• Proof of billing named after you • Bank statements for the last 3-6 months • Business registration papers •Taxpayer's Identification Number (TIN) • Composed agreement with the lessor of your desired business location

The franchisor will show the company background, as well as the points of interest of the franchise concept.

Details of the franchise business

The company representative may inquire and Throw questions to profound deeper into how you'll manage and organize the franchise business.

Your franchise qualifications

Do you own the area? Or planning to lease or buy it? The franchisor might need to know about it and assist you to discover the perfect location for your establishment or match you with appropriate destinations in its database.

Your target location

The officer in charge will let you know what you need to do following in case you choose to push through with buying the franchise. For instance, It may require you to go to customer service and management training.

Next steps of your application

• Length of effectivity of the contract Typically, these agreements last anywhere from ________. The length depends on factors such as the type of business, industry, and the specific terms discussed in the contract. Before signing a franchise agreement, it's vital to understand your rights and obligations as a franchisee.

five to twenty years

Total establishment venture costs, including the franchise expense, royalty charge, etc.

Renewal scheme, terms, and fee

are ongoing payments made by franchisees to franchisors for the rights to use the brand's name, systems, and support, Typically ranging from 4-6% of gross sales.

Royalty Fees

Franchise location (The exclusive territory or Area granted to a franchisee)

Franchise package inclusions

It doesn't mean your product or service is unique or entirely new.

Differentiation

Can your franchisee do without you in the long run? The most straightforward way to do this is to be the sole source of proprietary goods and services.

Continuing Value

How much capital will a franchise need in order to put up a replica of your store?

Affordability

ideal for amateur entrepreneurs because they are affordable, with some franchises starting at fees as low as $20,000.

Food Kiosks or Carts

•Founded by Joe Magsaysay, __________ launched its first food cart in the early '90s, inspired by trendy flavored popcorn. A year later, it began franchising-opening 74 successful locations within only one year.

Potato corner

the company behind Potato Corner, currently offers several franchise packages depending on the type and location of your franchise.

Cinco Corporation

Do you have an operating prototype of the business you want to franchise? If the business already have a successful prototype, you can start to think of franchising it.

Operating Prototype

Will be Profitable? Constructed a mcdo (franchise) stand-alone in the south during the pandemic. The owner has 10+ stores already and was very nice to share with us ROI details (as we were too curious about their numbers) • 3-5 years depending on branch's location so if 10 years yung franchise validity ng mcdo, you have 5-7 years to earn afte CROI.

Return on Investment (ROI)

Will your business still be relevant in other markets with different taste, cultures and conventions

Adaptability

How long will it take you to teach someone with no background in your business?

Teachability

Do you have the capital to invest in the development of a franchise program?

Capital

Do you commit to perform your obligations as a franchisor for the long-term?

Long-term Commitment

One of the main benefits you receive when purchasing a franchise is the use of well-known

Trademarks

This section describes the exclusive area or territory granted to the franchisee.

Location of the franchise

In this section, the duration of the agreement is specified.

Term of the franchise

In this section, all the mandatory fees are described: • Initial fee and what the franchisee receives for that fee • Royalty payment, what it is based on and when it is due

Franchisee's fees and other payments.

This section describes, in detail, all the services which the franchisor will provide: • training • operations support • advertising

Obligations and duties of the franchisor

This section includes: • the rights and obligations of a franchisee upon termination • descriptions about the transfer of the franchise agreement

Renewal, termination and transfer of franchise agreement

Be sure you understand the services you will get before you open: • site selection • training • development assistance

Franchisor's obligations

Be sure you know what services you will receive for your grand opening: • marketing • advertising • field support

20 An Introduction To Franchising THE IFA EDUCATIONAL FOUNDATION

Business policies are the rules created by an organization to govern its actions. They characterize the limits inside which decisions must be made. It also deals with the acquisition of resources with which organizational goals can be achieved.

FRANCHISE REGULATION

A business policy must have different features:

Specific Clear Reliable/Uniform Appropriate Flexible Stable

Policy should be definite. In case it is uncertain, then the implementation will become difficult.

Specific

Policy must be unambiguous. It should avoid The use of jargon and connotations. There ought to be no errors in taking after the policy. No misunderstandings.

Clear

Policy must be uniform enough to be efficiently followed by the subordinates

Reliable/Uniform

policy should apply to the present organization

Appropriate

Policy should be adaptable in operation. This does not mean that a policy should always be altered, but it should be broad in scope to ensure that the line managers use them in repetitive/routine scenario

Flexible

Policy should be stable. It will lead to indecisiveness and uncertainty in the minds of those who look into it for guidance

Stable

requiring all company owners in the Philippines to register their employees with Philippine Health Insurance Corporation (Philhealth) and to pay their share of contribution to the said agency

The new National Health Insurance Act (RA 7875/RA 9241)

SSS members who earn at least Php4,000 per month must be registered with the Home Development Mutual Fund (HDMF) which is the agency that administers the Pag-IBIG Fund.

As stated in RA 7742

Obtain a Mayor's Permit by complying with these requirements:

• Business Permit Application Form • Baranggay Clearance • Certificate of Registration from SEC • Public Liability Insurance for Malls, Restaurants, Cinemas, etc.

also a must for business operations with five or more employees.

Registration with the Department of Labor and Employment (DOLE)

contract between the franchisor and Franchisee

Franchising Agreement

Below are some of the key principles in contracts, according to Atty. Jericho del Puerto.

• Principle of Autonomy • Principle of Relativity • Principle of Adhesion • Principle of Mutuality

allows the parties to freely stipulate to whatever terms and conditions provided they are not contrary to law, morals, good customs, public policy or public order.

Principle of Autonomy

binds only those who agreed and cannot favor or prejudice a third person, even if he is aware of such contract and has acted with knowledge thereof.

Principle of Relativity

penalizes the one caused the ambiguity in the contract and thus interpretation will be against such party.

Principle of Adhesion

binds both contracting parties with its validity or compliance not left solely to the will of one of them

Principle of Mutuality

An act prescribing the intellectual property code and establishing the intellectual property office, providing for its powers and Functions, and for other purposes. the State shall promote the diffusion of knowledge and information for the promotion of national development and progress and the common good

Intellectual Property Law REPUBLIC ACT NO. 8293

There are several factors to consider in franchising a business. Here are as follows;

Differentiation Continuing Value Affordability Operating Prototype Return On investment Adaptability Teachability Capital Long term Commitment

MONETARY REVIEWER LESSON 1

Shiela Caber · 11問 · 1年前

MONETARY REVIEWER LESSON 1