There are two ways to obtain franchise rights: first, the state or government promulgates relevant policies to hand over some special industries or special products to certain companies for franchise; second, a company has Provide their company's intellectual property, patent rights or trademark service products to another company for a paid or free period of time or permanently. In addition, franchise rights are intangible assets.
1. Methods of obtaining franchise rights The methods of obtaining franchise rights are: 1. Authorized by government agencies to allow specific enterprises to use public property or enjoy the right to operate certain franchised businesses in certain areas. , such as allowing airlines to use state-owned airport facilities to operate passenger and cargo services on routes specified by the government; 2. One enterprise grants another enterprise the use of its trademarks, trade names, patents, proprietary technologies, etc. for a limited time or permanently Exclusive rights, in accordance with the provisions of the contract, to engage in business activities under the franchisor's unified business model and pay corresponding fees to the franchisor.
2. Is the franchise right an intangible asset? The franchise right is an intangible asset. A franchise is a privilege granted by an authority to an individual or legal entity. Franchising is a contractual relationship between a franchisor and a franchisee, whereby the franchisor provides or is obligated to maintain a continuing interest in the franchisee's business know-how and areas of learning. I would like to remind everyone that franchise rights, as a special type of identifiable intangible assets, play a decisive role in the production and operation of many enterprises.
3. What are the advantages and disadvantages of franchising? The advantages and disadvantages of franchising are: 1. Advantages (1) More detailed and comprehensive vocational training can be provided to employees. (2) Franchisees benefit from the brand's existing reputation and image in the minds of the public when operating a franchise store. (3) Compared with creating a new brand independently and developing the market for it, the franchise method is easier to operate because the product already has a customer base, so the investment required is smaller. (4) Mutual support and competition among franchise stores will help products develop faster. (5) The head office focuses on using profits in the research and development of new products to maintain the continuous updating of franchised products to maintain competitiveness. 2. Disadvantages (1) To join, you need to pay a high franchise fee, including materials and employee training fees. (2) Franchise stores are restricted by the head office and do not have the right to independently develop new products, so there is little room for development. (3) Each franchise store relies heavily on the head office.