Franchising generally includes three different forms: trademark franchising, product franchising and business mode franchising.
What is gas station franchise? Franchising of gas stations means that the franchisor authorizes other gas stations to use the trade name, registered trademark, proprietary technology, business model, business technology and service standards related to gas station operation by signing contracts, and the authorized gas stations engage in retail operation of refined oil products and related services under a unified franchise system according to the contract, and pay corresponding fees to the authorized enterprises. Among them, the enterprise that grants the franchise to others is a franchisee, and the gas station that is granted the franchise is called a franchisee.
Franchisees must meet the following conditions:
(a) the gas station conforms to the local gas station development plan and the national environmental protection, fire protection and building safety standards;
(2) Having certain management ability and good credit standing, and having no illegal business records in the last two years;
(3) Other conditions stipulated by the State Economic and Trade Commission and the provincial economic and trade departments.
What is network franchising and what is franchising?
Franchising refers to the trademarks (including service trademarks), trade names, products, patents and proprietary technologies, business models, etc. granted by the franchisee. Give it to the franchisee in the form of a contract, and the franchisee will engage in business activities under the unified business model of the franchisee according to the contract, and pay the corresponding expenses to the franchisee. From the above definition, we can see that franchising has the following basic characteristics:
1. Franchising is a contractual relationship between franchisor and franchisee, that is, the relationship between franchisor and franchisee depends on the contract of both parties.
2. There is no tangible asset relationship between franchisor and franchisee in franchising, but they are independent legal subjects, and each of them bears external legal responsibilities independently;
3. The franchisor has the ownership and/or exclusive right to the authorized matters involved in the contract between the two parties, while the franchisee obtains the right to use (or the right to use) and the right to income based on the right to use through the contract;
4. Authorization in franchising refers to the right to use intangible assets, including intellectual property rights, not tangible assets or their right to use;
5. The franchisee has the obligation to pay the fees to the franchisor according to the contract between the two parties;
6. The franchisee shall maintain the uniformity required by the franchisor in the contract.
The main advantages of the franchise model are:
Franchisees can achieve economies of scale only by investing brand and management experience, which can not only get returns in a short time, but also make intangible assets rise rapidly.
Because franchisees buy a successful operating system, they can save a "learning curve" that they have to go through when starting a business, including the necessary groping process such as choosing profit points and opening up markets, thus reducing business risks.
Franchisees can own their own companies and control their own revenues and expenditures. Franchisees' start-up costs are lower than other modes of operation, so they can recover their investment and make profits in a short time. Franchisees can get help and support from experienced franchisees in site selection, design, staff training, market and so on, so that their operations can quickly move towards a virtuous circle.
Franchisors and franchisees are not competitive, which is conducive to expanding market share.
To sum up, we clearly realize that the essence of franchising is an effective way for enterprises to use intangible assets for capital operation and realize low-risk capital expansion and scale operation. This is also the fundamental reason why franchising can develop rapidly.
Centennial inventory of franchising
1865, an American sewing machine company won the first franchise distribution network and dominated the American market from then on.
In 1950s, McDonald's and KFC introduced the franchise system, and the company developed rapidly, perfecting the franchise format.
In the 1960s and 1970s, franchising broke through the barriers of trade protectionism with its unique vitality and spread from the United States to all parts of the world. 1963, Japan established the first franchise chain-"No Price" West Point Coffee Shop, and began to abandon the traditional direct chain operation format. After 1970s, Japanese franchising developed rapidly centering on retail and catering industries, and formed its own franchising system.
Since 1980s, global franchising has developed rapidly ... USA: A chain store opens almost every 6.5 minutes. Franchising in Malaysia … Singapore … has become the national policy of these countries.
What benefits can franchising bring to you?
1, fulfill your dream of successfully establishing an independent career.
2. Share the brand gold mine: the brand is a symbol of honor, quality and service, with high gold content; Consumers' recognition of the brand has greatly shortened the investment cycle of the chain.
3. Share management know-how: "Take someone else's ladder and climb your own success building", and use the experience and information of the headquarters to avoid all kinds of risks that lead to the final failure of 80% novices.
4. Share the support provided by the headquarters: training, management, advertising, promotion, etc. , easy to open a shop, profitable.
Franchising in China
Franchising has been in China for less than 10 years, and it really developed in these two years. With the large international enterprises entering the China market, this mode of operation has had a strong impact on the traditional circulation system. Franchising is booming in China. Franchising has spread to almost all industries in the tertiary industry, especially the service industry. Franchising is rapidly becoming the most profitable way to invest and start a business in China. The time is ripe for franchise development, China, and China is the largest and most potential franchise market in the world.
What is the transfer of franchise? Franchise transfer can be divided into three types, meaning as follows:
1. Franchisees who produce franchises invest to build factories, or use franchisers' trademarks or logos, patents, technologies, designs and production standards to process or manufacture licensed products by OEM, and then sell them through distributors or retailers. Franchisees do not directly deal with end users (consumers). Typical cases include: Coca-Cola bottling plant and the production of Olympic logo products.
2. Products-Trademark franchisees use the franchisor's trademarks and retail methods to wholesale and retail the franchisor's products. As an enterprise that still maintains its original enterprise as a franchisee, it sells products produced by the franchisee and obtained trademark ownership alone or while selling other commodities.
3. Business model The franchisee has the right to use the franchisor's trademarks, trade names, corporate logos and advertisements, and operate in full accordance with the single-store business model designed by the franchisor; The franchisee appears in front of the public completely as a franchisor enterprise; The franchisor has strong control over the franchisee's internal management and marketing.
How to obtain the franchise: investing in the franchise industry requires the franchisee to have a keen insight into business. Before purchasing the franchise, the franchisee should understand the benefits and dangers of franchising, be satisfied with the resources provided by the franchisor, and understand that there are still risks in purchasing the franchise even if various preventive measures are taken. When evaluating franchising opportunities, on the one hand, the usual business knowledge is still important, on the other hand, investors need to understand the differences of franchising. 1. Development Timetable When the franchisee obtains a special regional concession, which is usually called a regional concession or a general concession, the franchisee usually insists that the franchisee fulfill the regional development timetable agreed by both parties. This means that franchisees must set up several franchisees by developers within a certain period of time. 2. Almost all franchise agreements have a fixed term. Unless franchisees are seriously unable to fulfill their obligations, most franchisees will extend the deadline when it comes. 3. Sub-franchise to obtain regional franchise or total franchise does not mean having sub-franchise. This means that franchisees who have not obtained sub-franchise can only operate all their stores directly at their place. For willing franchisees, considering the above situation, it is very necessary to make a request at the beginning of the negotiation. At present, many misunderstandings and contradictions in franchising are often caused by the franchisee's lack of understanding of "western-style" franchising. Although the success rate of franchising is high, it is not suitable for everyone. Now let's talk specifically about how investors should choose to join the business. 4. When choosing to join the company, it depends on the documents of the franchisor stating the sale and historical records of the franchise rights of the company. If there is a lack of detailed explanation in some cases in the document, the franchisor shall be required to provide it. The potential franchisee should know all relevant information before deciding whether to join the franchise system. 5. One of the main terms of intellectual property franchise is the use of intellectual property. Most franchisees have very special and specific requirements on how to use their intellectual property rights. This includes that the franchisee must adopt the franchisor's corporate logo in business operations, and sometimes the franchisee may have to purchase goods and equipment from overseas in order to achieve uniform standards. What specific aspects should we pay attention to? 1. The real investment cost needs to determine the real investment rather than the expected investment. Need to accurately check various cost items, such as rent, deposit, transportation, wages, insurance, etc. , especially if the franchisee is unfamiliar with the business. 2. Franchisee's obligations Another possible dispute is the franchisee's obligations. Some franchisees have many obligations to franchisees, so it is better to let franchisees operate independently. The obligations of the franchisee are usually included in the franchise agreement, so they are legally binding. The franchisee must understand and agree to these obligations. 3. Business records of directors and main managers. These records can answer some important questions, such as: Is the founder still in charge of the company? Is CEO a major shareholder? How long have the directors and main managers joined the company? Have they ever been involved in a failed franchise industry? Who is the real "expert" in the company? In addition, it is necessary for the potential franchisee to meet with the personnel of the concessionaire. In any case, there must be a highly harmonious and trusting relationship between potential franchisees and franchisees. 4. The franchisor's history A franchising company should not only show that its business projects are very good, but also show that it is a good franchisee. The basic information and statistical data that the franchisor should provide include: the length of the franchise period of the company, the number and location of the company's direct stores, the number and location of foreign franchisees, the number and location of closed or changed stores, the growth rate of the franchise network, and franchisees with good litigation records are generally willing to meet with existing franchisees to understand the situation. Existing franchisees are a barometer of the franchise network to a great extent, and franchisees who are willing to join should not miss any opportunity to meet existing franchisees. 5. The level of training and support provided by the franchisor. This is probably the most controversial place in the franchise relationship. If the franchisor's actions are inconsistent with his promises, it is easy for the franchisor to misunderstand the level of training and support that the franchisor will provide. Unfortunately, many franchisees promise too much, which is difficult to achieve. Therefore, the franchisor's commitment should be in writing. Franchisees must clearly understand the actual level of training and support that franchisees may provide, because these franchisees are usually thousands of miles away. 6. Elements of good business operation: These elements should include the following established names or trademarks, good business philosophy, good business image, tested products or services, excellent operating system, very effective marketing plan and unique technology. The above elements are helpful for the franchisee to evaluate the competitiveness of the franchise system in a specific region. In addition, it is absolutely necessary to visit the franchisor's office and several franchise stores. Obviously, investors should try their best to seek help and advice before joining the franchise industry. Help and Advice If the franchisee needs help and advice, who should he ask for advice from people who are closely related to the success or failure of the franchise? 1. Trustworthy franchise consultants should check their historical records and get information from people who have received their services before consulting consultants. A good consultant should keep in constant contact with franchisees, franchisees and others in the franchise industry. Their experience and information are very helpful for franchisees and franchisees who are far apart to bridge the gap in expectations, language and culture. 2. Experienced franchise lawyers should get legal advice on franchise agreements from reputable franchise lawyers. Investing in franchising requires the franchisee to have a keen insight into the business. Before purchasing the franchise, the franchisee should understand the benefits and dangers of franchising, be satisfied with the resources provided by the franchisor, and understand that there are still risks in purchasing the franchise even if various preventive measures are taken. Not all franchise industries are born equal, and franchise contracts also have similarities and differences. An enterprise that seems certain to succeed may fail because of declining demand, economic recession or poor management by franchisees. Looking at the numerous franchise systems, it is an arduous task in itself to distinguish the advantages and disadvantages. The best tool to find a successful franchise system or avoid a poorly managed franchise system is investigation and research. Franchisees who join the association can get good advice and information from them at any time. If there is no such association in the franchisee's place, then go to the franchisee's place where you want to join and check the franchise association. Most good and established franchisees are members of domestic franchise associations.
If the franchise is transferred without the consent of the franchisor, is the income from the franchise valid? Franchisors are not allowed to transfer franchisees without authorization. The franchisor shall specify the conditions of contract transfer within the contract period, and the applicant shall make full preparations when deciding whether to join the franchise system, and fully consider the fact that it is not easy to quit the franchise system. The franchise contract stipulates that Party B (franchisee) shall not transfer the franchise store to others without the written consent of the franchise headquarters. Otherwise, Party A (Franchisor) has the right to terminate this contract and hold Party B liable for breach of contract.
Franchising, as a special tangible intangible asset, plays an important role in the production and operation of many enterprises. With the development of market economy and the increasing frequency of foreign exchanges, there are more and more opportunities for domestic enterprises to contact, understand, develop and utilize franchise rights. From the perspective of asset management and capital management, the understanding and application of this kind of intangible assets in domestic business circles is still in its infancy, especially the understanding and grasp of its asset value has not yet reached a unified and standardized conclusion. In order to further develop and utilize various franchise rights to serve the production and operation of enterprises, it is necessary to systematically explore the formation mechanism of the value of franchise assets and how to determine their value fairly according to the actual situation of assets.
At present, the valuation of intangible assets mostly adopts the present value method of income, and the excess expected income that may be obtained from the future use of intangible assets is converted into the current amount of funds at a certain discount rate, which is the fair value of the intangible assets.
Franchising is different from general intangible assets in the way of value realization. For example, franchise rights are generally not transferable and will not generate transaction prices. Nor can it be used as long-term capital to invest abroad and obtain investment income, and so on. Therefore, the liquidity of such assets is very poor. Under normal circumstances, enterprises with franchise assets undergo major property rights changes such as reorganization and merger. If the new property rights subject is authorized to survive the special rights of the original property rights subject, it is necessary to evaluate the franchise assets and incorporate them into the total asset value and asset management.
From the perspective of asset management, it is more meaningful to manage and use franchise assets well than to grasp their value. Knowing its value is helpful for asset holders to properly handle and make good use of such assets and serve the business development of enterprises.
What's the difference between franchising and exclusive operation? Franchise: the authorization to operate a certain commodity or service in a specific time and area. Generally speaking, it is the permission and approval given by the state administrative organs to commodities that must obtain business licenses, such as tobacco business and liquor business. Exclusive right to operate: the authorization to operate a certain commodity or service exclusively in a specific time and area. Generally speaking, this is the authorization agreed by the manufacturer or brand owner. Franchise can include franchise content, and franchise can form the form of exclusive operation in a certain area.
What is the franchise? Franchising means that the franchisee grants its own trademarks (including service trademarks), trade names, products, patents, know-how and other business resources to the franchisee in the form of franchise contracts, and the franchisee engages in business activities under the franchisee's unified business model according to the provisions of the contract and pays corresponding fees to the franchisee.
Compared with direct chain stores, franchising not only reduces the operating costs of franchisees, but also expands the market. It can also reduce the investment risk of franchisees and is conducive to entrepreneurship; At the same time, because it can guarantee the same product quality and service, it is more beneficial to consumers and is a "win-win" operation mode. Therefore, at present, many large international chain enterprises, such as KFC and McDonald's, are constantly developing and growing by franchising. The development of modern franchising in China began in the mid-1980s. By the end of 20 1 1, there were more than 5,000 franchise systems in China, with the total number of franchisees exceeding 1 10,000, covering more than 70 industries, and the number of jobs directly created by franchise enterprises exceeded 1 10,000. At the same time, the standardization and management system has been gradually established: on the one hand, the supporting laws and regulations are becoming more and more perfect. Since 2007, the Regulations on the Administration of Commercial Franchise, the Measures for the Administration of Commercial Franchise Filing and the Measures for the Administration of Information Disclosure of Commercial Franchise have been promulgated and implemented one after another. The draft of 20 12 Provisions on the Punishment Procedure of Commercial Franchise has been held at an expert forum and will be announced soon. On the other hand, the Ministry of Commerce has set up a commercial franchise management office composed of six departments, namely, the circulation development department, the laws and regulations department, the market order department, the finance department, the service trade department and the e-commerce department, to further strengthen guidance and management and ensure the standardized market order and the healthy development of the industry.