Saturday, February 27, 2010

Active Primary Games Online

THE FRANCHISE: business opportunities high performance and low business risk

The first action of my new experience, is dedicated to the type of contract known as "franchise".
Yesterday afternoon, a neighbor of mine, a guy to tell the truth a bit "eccentric," he greeted me for the first time after years of meetings / confrontations more or less by chance.
She greeted me as if nothing had happened and soon after, waking with a start from who knows where torpor, and chased after me and asked: "lawyer, attorney, excuse me, I was offered a good deal, likely to open a franchise store. What do you think? But what exactly is this franchise? "
I was speechless, it was the first time he spoke to me!
Here, then ...
The business method of franchising has taken root in Italy since the early 70s and since then, as in the U.S. (home country), its growth has been rapid and marked by setbacks, proving to be an industry that knows no crisis . A witness just think that the last two years, compared with a growth rate of traditional shops close to zero, the franchise has reached over 52 000 outlets with a significant increase of 6.9%
between Today top ten companies listed on the American Stock Exchange, four have been developed through franchising.
The franchise agreement is a continuing collaboration for the distribution of goods and services between a business (the franchisor or franchisor) and one or more new business (Franchisees or affiliates), which became part of the commercial and retail space.
Affiliate franchisor and work together for one purpose: to create a business successful .
The franchise (franchise), is governed by Law 06.05.2004, n.129, which defines the relationship of the franchise, as the contract between two legal entities, economically and legally independent , whereby one party grants the other the availability, at a fee, a set of industrial property rights or intellectual trademarks, trade names, signs, utility models, designs, copyrights, know-how, patents, or technical and commercial advice, putting the franchisee in a system consisting of a plurality of members located throughout in order to sell certain goods or services.
Peculiarities of the franchise agreement:
The franchisor or franchisor : the person proposing the project is generally a manufacturing or distribution goods and / or services operating in a given sector of activity with experience and expertise, using well-defined brand image and when can a brand known to the public. The franchisor to establish a franchise network must have experienced his formula through retail outlets or a pilot, who must possess the characteristics necessary for reproducing the future marketing of the project, which is drawing to its potential members. All aspects of the project must receive from the period of pilotage a confirmation of their validity and effectiveness, as well as practical information on their transferability and repeatability in the hands of the affiliates.
The franchisees or affiliates: the affiliate is usually a first-time entrepreneur who has decided to start their own business (and then putting available resources, professional and human), relying on an experienced partner (franchisee) not legally involved in management. The franchisee maintains autonomy in the conduct of its business and organization.
The object of the collaboration : Once the project has been tested and has proven its effectiveness, the franchisor is able to propose, at a fee, your Know- how any future affiliates.
To Know-how means : wealth of knowledge from non-patented practical experience and testing by the franchisor, which is secret, substantial and identified.
Secret: not generally known or accessible. Substantive knowledge needed to manage the franchisee or the organization of the contract goods or services. Located: described in detail in order to verify the secrecy and substantiality.
franchisor's commitment is to transfer this body of knowledge and experience (know-how = know-how), to provide some products or services, to yield the right of use of its brand and image to provide assistance, services and consulting to enable the franchisee to operate replicate its business with the success of the pilot stores.
In practice the transfer of know-how is expressed in different ways: training, operations manuals, assignment or license of patents, assistance, support in the site or in a center of pilotage, consultancy, training courses and motivation. Again: estimates of investment costs of start-up, store design and construction of the franchisee through interior arrangement, indications of standard to be met, etc. ...
The contract period : q f, is entered into a fixed-term franchise, the franchisor to the franchisee will have to guarantee a minimum sufficient investment and depreciation However not less than three years . E 'subject to the possibility of early termination for default by either party.
The fee : the transfer of "know-how" is a fee. Entrance fee: usually required to sign the contract, is the so-called "purchase price" of the possibility of using the system. Royalty: Some franchisors replace or support the right of entry, payment of amounts commensurate with the turnover, the affiliate will pay periodically for the duration of the contract. Other forms of payment: regular contributions contractually agreed that the franchisee pays for advertising, institutional investment, made in order to increase brand awareness.

Other aspects to be regulated :
- obligations and rights of territorial exclusivity and brand;
- the minimum purchase of products to be marketed in-store franchisee;
- regulation of prices (price lists, discretion and frequency of discounts etc. ...);
- the method of delivery (time and terms of delivery, shipping, shipping costs, responsibility for the goods, etc. ...);
- advertising and marketing;
- relations between franchisees
- ....
It 's the case then to show that the contract is not everything in the relationship, there are concepts such as fairness, good faith and fairness. The franchise is in fact a distribution formula that is based on the concept of synergy, and synergy between franchisor and franchisees is the basis of the success of such an organization.

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