Franchise systems - A franchise is a vertical, cooperative sales system for independent entrepreneurs in which a franchisor offers a franchisee a package. It consists of a procurement, marketing, financing and management / organizational concept, the right to use property rights, the training of the franchisee and the obligation of the franchisor to actively and continuously support the franchisee and to continuously develop the concept.
The market presence of the system partners is uniform and is characterized by the service program based on the division of labor.
The franchisor provides the recipient with a complete business model and receives a certain share of the turnover of the recipient business. In return, the taker sells successfully in his specified sales area under the name of the giver.
However, the franchisee remains an independent businessman and operates his company in his own name and for his own account; He has to pay a certain fee for using the franchise package. Every franchisee appears uniformly on the market.
Main advantages: The donor can expand significantly with lower capital investment compared to its own branches. The taker sells a well-known and competent brand. Examples of products are Coca-Cola, for dealers the OBI stores, in the catering sector sometimes McDonalds.