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    Nhng quyn thng mi-cn lc mi trn th trng VN05:16' 06/12/2004(GMT+7)

    (VietNamNet) - Dilmah, Qualitea, Jollibee,KFC,Cafe Trung Nguyn... anghot ng rt hiu qu Vit Nam theo hnh thc franchising (nhng quynthng mi). y mi ch l s bt u ca mt ln sng mi ang ni ln.Hng lot tp on bn l, n nhanh s t vo Vit Nam sau thi im gianhp WTO di hnh thc franchising. Nu DN Vit Nam khng nm btnhanh hnh thc ny th c th s b thit thi, c bit trong th trng bnl.

    Fanchising ti Vit Nam - cuc chin mi bt u

    Hin franchising xut hin mi khu vc trn th gii v ti a s cc quc gia

    vi 16.000 h thng trn ton cu. Nhng quyn thng mi, hay franchising lphng thc kinh doanh c cc tp on ln trn th gii, c bit trong lnhvc phn phi, dch v s dng.

    C th hiu mt cch nm na v hot ng nhng quyn thng mi nh sau: bnnhng quyn trao cho bn nhn quyn s dng m hnh, k thut kinh doanh, sn

    phm dch v di thng hiu ca mnh v nhn li mt khon ph hay % doanhthu trong thi gian nht nh.

    Cc nhn hiu n nhanh McDonald's, KFC, Jollibee, kem Carvel, siu th 7-

    Eleven... tr nn quen thuc vi ngi tiu dng trn khp th gii, nhng tngi rng b quyt thnh cng ca h chnh l phng thc kinh doanhfrachising.

    D tho 8 Lut Thngmi Sa i:

    -Nhng quyn thngmi l hot ng thngmi, theo , bn

    nhng quyn chpthun trao quyn vcung cp cc h tr cho

    bn nhn quyn bn bn hng ha, cungng dch v theo nhnhiu hng ha, h

    http://www.vnn.vn/kinhte/2004/09/260962/http://www.vnn.vn/kinhte/2004/09/260962/http://www.vnn.vn/kinhte/2004/09/260962/http://www.vnn.vn/kinhte/2004/09/260962/
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    Vit Nam, phng thc kinh doanh mi m ny dunhp t u nhng nm 1990 v hin ang pht trin vimt tc kh v bo; c chuyn gia c tnh ti 15%-20%/nm.

    Theo iu tra ca Hi ng Nhng quyn thng mith gii (WFC) nm 2004, hin Vit Nam cng c 70h thng ny. in hnh nh KFC, Trung Nguyn,Dilmah, Qualitea, Jollibee... Tuy nhin, cuc cnh tranhtrn lnh vc ny dng nh mi ch bt u. Sau thiim Vit Nam gia nhp WTO vi s m ca ca thtrng dch v, cc chuyn gia thng mi d on, hnglot cc tp on bn l v n nhanh, siu th s xmnhp mnh vo th trng Vit Nam. Vi phng thc

    franchising, h c th nhanh chng vn ''vi bch tuc''chim lnh th trng bn l ca Vit Nam.

    Nhiu nh u t ti th trng Vit Namcng ang tnhchuyn lm ntheo m hnh franchising nh Lotteria vichui 9 ca hng. H thng ny d tnh khi pht trin n20 ca hngs m rng theo m hnh franchising.

    V sao franchising?

    Mt trong nhng DN Vit Nam u tin nhy bnnmhnh thc kinh doanh franchising phi k n lTrung Nguyn. Thnh lp t gia nm 1996, n nay,thng hiu Trung Nguyn c mt trn 63 tnh thnh.T 1998-2004, Trung Nguyn c khong trn 500qun c ph nhng quyn chnh thc.

    Theo ng Nguyn Trn Quang, Gim c Tip th caCng ty C ph Trung Nguyn, c trng bin TrungNguyn, cc qun cph u phi k hp ng rng bucvi cng ty. H s phi bi tr qun theo mt phong cchthng nht, pha ch c ph theo mt cng thc nht qunca Trung Nguyn. Pha Trung Nguyn khng h thu phchuyn nhng i vi nhng qun ny. Ngc li, phaTrung Nguyn c nhng s gim st nht nh v mt kthut pha ch, cch thc qun l vi nhng qun ny. Vi phng thc kinh doanh

    thng, phng thc dobn nhng quyn xcnh trong mt khongthi gian v phm vi a

    l nht nh.- Quyn c nhng

    bao gm quyn s dngcc b quyt nghnghip; cch thc tchc bn hng, cungng dch v; tn thngmi; nhn hiu hngha, dch v; khu hiu

    kinh doanh; biu tngca bn nhng quynv quyn s dng cctr gip khc bnhng ha, cung ngdch v.

    - Thng nhn VitNam v thng nhnnc ngoi hot ngthng mi ti Vit

    Nam mun nhngquyn thng mi phing k vi B Thngmi.

    - Hp ng nhngquynthng mi phic lp thnh vn bn

    hoc cc hnh thc khcc gi tr php l tngng v phi cng k vi B Thngmi.

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    ny, Trung Nguyn khng ch thnh cng trong nc m cnc mt ti nhiunc nh: Nht Bn, Campuchia, Singapore, Thi Lan... Hang c tham vngm rng danh ting sang Philippines, Trung Quc, Hn Quc...

    Vi bn nhn quyn, nht l nhng ngi mi bt u bc vo kinh doanh thfranchising l cch la chn m bo gim thiu ri ro v khng phi tri qua giaion xy dng v pht trin ban u. Mt khc, nu thng hiu c uy tn th h sd dng c th trng chp nhn.

    ng on nh Hong, Gim c Cng ty T vn Masso nhn nh rng:''Franchising l mt trong nhng phng thc u t khn ngoan v chc chnnht''. Theo nghin cu ca Phng Thng mi M, t nm 1974 n nay, trung

    bnh cha n 5% DN trong lnh vc nhng quyn tht bi so vi t l 30%-65%trong cc lnh vc khc.

    Vi nhng DN Vit Nam ang c tham vng m rng ra th trng th gii, nhngcha sc tn cng trc tip cc th trng ln y tim nng nh M, EUhay Nht Bn th franchising qu l mt bc i ph hp. Nhng quyn thngmi s gip cc DN xm nhp mt cch gin tip vo nhng th trng ny vi chi

    ph thp nht, ngthi y cng l cch hu hiu bo v nhn hiu ca DN tith trng nc ngoi.

    Cc mt hng truyn thng Vit Nam nh hng th cng, m ngh, may mc, thcphm l nhng sn phm tim nng c th p dng m hnh franchising. Thng

    8/2002, AQ Silk chuyn nhng thnh cng nhn hiu ca mnh ti M vi gi100.000USD. Mi y, Ph 24 ti TP.HCM cng thnh cng vi phng thcny. Hin, danh sch xin nhng quyn ca h c nhiu khch hng n t M,

    Nht, Hn Quc.

    Cn sm c lut iu chnh

    Mc d c nhiu u im nhng franchising l m hnh kinhdoanh d ny sinh tranh chp nht, c bit l nhng tranh chpv doanh thu. Bn nhng quyn c th kim sot c khon

    doanh thu c th ca bn nhn quyn tnh %, trong khi quynqun l honton thuc v bn nhn quyn.

    Mt khc, m rng theo hnh thc franchising, DN cng phi imt vi nguy c s b gim uy tn thng hiu nu bn nhnquyn khng thc hin ng cam kt. V d nh ch mt vt bntrn tm bin Cafe Trung Nguyn hay mt thi bt lch s ca

    Mt qun C phTrung Nguynti Tokyo.

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    Nhng quyn thng mi l g?

    Cp nhp: 3/11/2009

    Chng ta c th u nghe ni ti nhng hp ng nhng quyn c gi tr hng t la.

    Nhng khng phi ai cng hiu r nhng quyn thng mi l g?

    Mt nhng quyn thng mi l mt s tha thun hay cp php gia hai

    t chc php l c lp trong cho php :

    - Bn nhn quyn c quyn tip th sn phm hay dch v s dng

    phng php hot ng ca bn giao quyn.

    - Bn nhn quyn c trch nhim phi tr cho bn giao quyn cc khon

    ph cho cc quyn li ny.

    - Bn giao quyn c trch nhim phi cung cp cc quyn li v tr gip

    cho bn nhn quyn.

    Bn giao quyn: 1. S hu thng hiu 2. Cung cp cc tr gip: i

    khi l ti chnh, qung co, tip th v o to. 3. Nhn cc ph.

    Bn nhn quyn: 1. c php s dng thng hiu. 2. M rng kinh

    doanh vi s tr gip ca bn giao quyn. 3. Tr ph.

    Cc loi hnh nhng quyn thng mi

    Cp nhp: 3/11/2009

    C hai loi nhng quyn thng mi chnh, l: phn phi sn phm v hnh thc kinh doanh.

    Hnh thc nhng quyn thng mi phn phi sn phmn gin lbn sn phm ca ngi giao quyn v y l mi quan h gia ngi cung

    cp v ngi bn hng.

    Mt vi nhng quyn thng mi phn phi hng ha ging nhau :

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    - Pepsi

    - Du Exxon

    -

    Cng ty t Ford

    Mc d nhng quyn phn phi sn phm chim phn ln tng doanh s

    bn l, nhng phn ln cc nhng quyn thng mi ngy nay l c hi

    hnh thc kinh doanh.

    Nhng quyn thng mi hnh thc kinh doanh, mt khc, khng nhng

    ch s dng hng ha, dch v v thng hiu ca ngi giao quyn m cn

    c mt phng php y iu hnh mt doanh nghip nh l mt cuncm nang v k hoch tip th v hot ng. Nhng quyn hnh thc kinh

    doanh l hnh thc ph binnht ca nhng quyn thng mi.

    Theo t bo USA Today, 10 c hi nhng quyn ph bin nht trong lnh

    vc ny l:

    - n nhanh Dch v - Nh hngXy dng Dch v kinh doanh Bn

    l - my mc t ng Dch v bo dng - Bn l thc n Khch sn.

    Cc loi hp ng nhng quyn thng mi

    Cp nhp: 3/11/2009

    C hai loi hp ng nhng quyn thng mi: - Mt n v nhng quyn thng mi trctip duy nht. -Nhiu n v nhng quyn thng mi: pht trin theo khu vc v nhngquyn tng ( nhng quyn nhnh )

    Nhng quyn thng mi trc tip cho mt n v duy nht l mt hp ng

    m bn giao quyn giao cho bn nhn quyn quyn c m v hot

    ng mt n v nhng quyn. y l hnh thc nhng quyn ph bin v

    n gin nht. Tuy nhin, nu c th, bn nhn quyn c th mua thm mt

    n v na sau khi nhng quyn gc n nh.

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    Mt hp ng nhng quyn tng giao cho bn nhn quyn nhiu quyn hn

    l hp ng pht trin theo khu vc. Ngoi vic c quyn v trch nhim

    m v hot ng mt s n v nht nh mt khu vc c th, bn nhn

    quyn tng c quyn bn nhng quyn cho ngi khc trong khu vc vc bit n nh mt nhnh nhng quyn. V vy bn nhn quyn tng

    c chuyn giao rt nhiu trch nhim vquyn li ca bn giao quyn nh

    l tr gip v o to cng nh nhn ph v ph bn quyn.

    Theo mt hp ng nhng quyn pht trin theo khu vc, bn nhn quyn c quyn

    m hn mt n v ti mt khong thi gian nht nh v mt khu vc nht nh. V d,

    mt bn nhn quyn c th ng m 5 n v nhng quyn trong thi gian 5 nm

    mt khu vc lnh th c th.

    Nhng quyn nhiu n v l hp ng m bn giao quyn giao cho nhn quyn

    c m v hot ng hn mt n v nhn quyn. C 2 cch m mt nhng quyn

    nhiu n v c th c l:

    - Mt nhng quyn pht trin theo khu vc

    - Mt nhng quyn tng

    Cc thut ng thng thng v nhng quyn

    Cp nhp: 3/11/2009

    hiu r hn v nhng quyn thng mi, chng ta cng tm hiu mt s thut ng thngc s dng trong hnh thc nhng quyn.

    Business format franchise -Nhng quyn hnh thc kinh doanh: l loi nhng quyn khng ch bao gm snphm, dch v v thng hiu, m cn ton b phng php iu hnh kinh doanh, nh l k hoch tip th v cmnang hot ng.

    Disclose statement - Ti liu trao i ni b: cng c bit n nh l thng bo chi tit chun v nhng quynthng mi, ti liu ni b ny cung cp cc thng tin v bn giao quyn v h thng nhng quyn.

    Franchise -Nhng quyn thng mi: l giy php miu t mi quan h gia bn giao quynv nhn quyn, bao gm c vic s dng thng hiu, ph, tr gip v iu khin hot ng.

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    Franchise agreementHp ng nhng quyn: l hp ng c vit bng vn bn v hp php gia bn giaoquyn v nhn quyn, nu r nhim v v quyn li ca mi bn.

    Royaly -Ph bn quyn: l ph thng xuyn m bn nhn quyn phi tr cho bn giao quyn, thng da trn phntrm doanh s bn.

    Trademark - Thng hiu: du hiu nhn bit ca bn giao quyn, tn thng hiu, logo c cp php cho bnnhn quyn.

    UFOC (Uniform Frachise Offering Circular): Thng bo chi tit chun v nhng quynthng mi l mt hnh thc dng trao i cc thng tin ni b, nhm cung cp thng tin vbn giao quyn v h thng nhng quyn thng mi cho bn nhn quyn tim nng.

    Franchisor -Bn giao quyn: l ngi hoc cng ty giao cho bn nhn quyn quyn c kinhdoanh di thng hiu ca h.

    FranchisingPhng php nhng quyn:phng php m rng kinh doanh thng qua vic cp php thnghiu, thanh ton ph, cng vi s tr gip v iu kin c bit.

    Franchisee - Bn nhn quyn: l mt ngi hoc cng ty nhn quyn t bn giao quyn kinh doanh s dngthng hiu ca bn gia quyn.

    Cc bin php thay th khc cho nhng quyn thng mi

    Cp nhp: 3/11/2009

    Ngoi nhng quyn thng mi, c hai phng php ph bin khc m cc doanh nghip dng m rng th trng v cc knh phn phi: - Mi quan h vi cc nh phn phi, v - Cp

    php

    Mi con ng u nhm n khch hng, tuy cch i c khc nhau: hoc

    qua ngi lao ng, qua h thng di l phn phi, qua cp php v qua

    nhng quyn.

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    Trong mi quan h vi i l phn phi, cc nh phn phi thng:

    - c hp ng hp tc quan h vi nh cung ng.

    - mua s v bn l

    - rt ni ting vi thtrng a phng v khch hng

    - c th lm vic vi nhiu cng ty ch khng phi mt nh cung cp.

    - c th khng nhn c nhng trgip hay o to tha thun vi

    nh cung cp nh bn nhn quyn.

    Mt vi trng hp mi quan hi l phn phi ging nh nhng quyn v

    ngc li. Mt bn nhn quyn c rt nhiu tha thun hat ng t do

    iu hnh doanh nghip th c th trng ging nh mt i l phn phi c

    lp. Mt i l phn phi c th chu nhiu qun l t pha nh sn xut/cung

    cp, v dn hnh thnh mt nhng quyn thng mi.

    Mt khc, cp phpli cho php bn c nhn cp php quyn c s

    dng mt thng hiu c th. Khng ging cc trng hp nhng quyn,

    bn giao quyn c quyn can thip su vo hot ng ca bn nhn

    quyn, bn cp php li ch yu quan tm n vic thu ph bn quyn v

    gim st vic s dng giy php hn l viec nh hng n hot ng ca

    doanh nghip.

    C th tm hiu thm twww.licensing.org

    Nhng thun li v bt li khi s hu mt nhng quyn

    Cp nhp: 3/11/2009

    http://www.licensing.org/http://www.licensing.org/http://www.licensing.org/http://www.licensing.org/
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    Rt nhiu thun li v bt li khi s hu mt nhng quyn cn phi cn thn nh gi trc khiquyt nh mua mt nhng quyn.

    Nhng thun li:

    - Mt nhng quyn thng mi cho php ngi nhn quyn mt mc

    c lp nht nh ni h iu hnh kinh doanh.

    - Mt nhng quyn thng mi cung cp sn phm v dch v

    c xc lp c ngha l n c hng s cng nhn v thng

    hiu rng ri.iu ny gip cho bn nhn quyn thu c nhiu li ch

    t s hiu bit ca khch hng m iu ny phi tn hng nm tri mi

    c c.

    - Nhng quyn thng mi lm tng kh nng thnh cng trong kinh

    doanh ca bn v bn ang lm vic vi sn phm v phng php

    c chng minh l thnh cng.

    - Nhng quyn thng mi c th hp dn ngi tiu dng bi mt

    mc chc chn v cht lng v khng thay i v n c k

    kt bng mthp ng nhng quyn.

    - Nhng quyn thng mi c th em n nhng tr gip ban u

    quan trng nh: + La chn v tr, + Thit k v xy dng + Ti chnh

    ( cho mt s trng hp ) + o to v chng trnh khai trng.

    - Nhng quyn thng mi cn tip tc cc h tr sau: +o to +

    Tip th ti a phng v ton quc + L trnh hot ng v cc tr

    gip khc v hot ng + Tip tc tr gip v qun l v gim st +

    Tng sc mua v tip cn cc phi v mua bn ln ( mt vitrng

    hp).Nhng bt li:

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    Phng php nhng quyn c iu hnh bi lut nh nc yu cu ccbn giao quyn phi cung cp cho cc bn nhn quyn tim nng thng tinmiu t r mi quan hgia bn giao quyn v nhn quyn.

    Hai ti liu php l ca phng php nhng quyn l:

    - Ti liu thng tin ni b, cn c hiu l thng bo chi tit chun vnhng quyn.

    - V hp ng nhng quyn.

    Thng bo chi tit chun v nhng quyn: ( UFOC )

    Mc ch ca UFOC l cung cp thng tin v bn giao quyn cho cc bnnhng quyn tim nng, c thng tin v h thng nhng quyn v c hpng nhng quyn m h s cn phi k, v v vy h c th a ra mt

    quyt nh c y thng tin.Thm vo phn ti liu ni b , UFOC s bao gm c nhng hp ngnhng quyn thc t, v nhng hp ng khc m bn nhn quyn cnphi k, cng vi cc thng tin ti chnh ca bn giao quyn.

    UFOC c thit k ra cung cp cho bn nhn quyn nhng thng tin mh cn ra c quyt nh ng n v u t vo mt nhng quynthng mi no c th.

    Theo lut, bn giao quyn khng th a ra mt nhng quyn thng mi

    nu cha xut trnh cho bn nhn quyn ti liu thng tin ni b ny. UF OCbao gm nhng thng tin sau:

    - Bn giao quyn.

    - Cc nhn lc ch cht ca cng ty.

    - Kinh nghim qunl trong qun l nhng quyn.

    - Lch s kin tng v ph sn ca bn giao quyn.

    - Cc chi ph ban u v tip theo lin quan n vic m v iu hnh phi

    v nhng quyn.

    - Mua bn v u t cn thit.

    - Quyn v lnh th hay khu vc.

    - Trch nhim ca bn giao quyn v nhn quyn.

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    - Cc nhng quyn khc trong h thng v cc thng tin lin lc

    Vic nhn ti liu UFOC ny c iu khin bi nguyn tc 10 ngy. Bngiao quyn phi b tr cho bn nhn quyn 10 ngy lm vic ngh v quytnh ca h trc khi h c php k vo hp ng nhng quyn.

    Hp ng nhng quyn:

    Hp ng nhng quyn thng mi chi tit hn bn UFOC v cc iukhon v mi quan h gia bn giao quyn v bn nhn quyn. Mt hpng nhng quyn thng mi chun c th bao gm cc chi tit c thsau:

    - H thng nhng quyn: nh l cch s dng thng hiu,sn phm.

    - Lnh th, khu vc.

    - Quyn v ngha v ca cc bn: tiu chun, l trnh, o to, tr gip,qung co,...

    - Qung thi gian nhng quyn.

    - Cc khon thanh ton ca bn nhn quyn cho bn giao quyn.

    - Kt thcv hoc quyn chuyn nhng - nhng quyn.

    Hp ng nhng quyn l mt vn bn php l dng iu khin miquan h v c th ho cc iu khon mua bn trong nhng quyn. Gingnh UFOC, hp ng nhng quyn cng c qung thi gian suy ngh. Bnnhn quyn tim nng c quyn theo lut php c php c 5 ngy lm vic suy ngh trc khi c php k hp ng nhng quyn cui cng. iuny gip h c thi gian xem xt v suy ngh cc iu khon ca hpng.

    Franchising is the practice of using another firm's successfulbusiness model. The word'franchise' is of anglo-french derivation - fromfranc- meaning free, and is used both as a nounand as a (transitive) verb.[1]1

    http://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Business_model
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    For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods andavoid investment and liability over a chain. The franchisor's success is the success of thefranchisees. The franchisee is said to have a greater incentive than a direct employee because heor she has a direct stake in the business.

    However, except in the US, and now in China (2007) where there are explicit Federal (and in theUS, State) laws covering franchise, most of the world recognizes 'franchise' but rarely makeslegal provisions for it. Only Australia, various provinces within Canada, France and Brazil havesignificant Disclosure laws but Brazil regulates franchises more closely.

    Where there is no specific law, franchise is considered a distribution system, whose laws apply,with the trademark (of the franchise system) covered by specific covenants.

    Overview

    Businesses for which franchising works best have the following characteristics:

    Businesses with a good track record of profitability.

    Businesses which are easily duplicated.

    As practiced in retailing, franchising offers franchisees the advantage of starting up quicklybased on a proven trademark, and the tooling and infrastructure as opposed to developing them.

    Although there are franchises around productsChaneland other cosmetics, to name theprominentby and large, the franchises revolve around service firms. At the sub-$80,000 level,they are, by far, the largest number of franchises.[2]These allow a business, combined withfamily time and a location not far from home. Some franchises are available for a few thousand

    dollars.

    The following US-listing tabulates[3]the early 2010 ranking of major franchises along with thenumber of sub-franchisees (or partners) from data available for 2004.[4]It will also be seen fromthe names of the franchise that the US is a leader in franchising innovations, a position it hasheld since the 1930s when it took the major form of fast-food restaurants, food inns and, slightlylater, the motels during the first depression. Franchising is a business model used in more than 70industries that generates more than $1 trillion in U.S. sales annually (2001 study).[citation needed]Franchised businesses operated 767,483 establishments in the United States in 2001, countingboth establishments owned by franchisees and those owned by franchisors:[5]

    1.Subway(Sandwiches and Salads | Startup costs $84,300 $258,300 (22000 partnersworldwide in 2004).

    2.McDonald's| Startup costs in 2010, $995,900 $1,842,700 (30,300 partners in 2004)

    3.7-ElevenInc. (Convenience Stores) |Startup Costs $40,500- 775,300 in 2010,(28,200 partners

    in 2004)

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    4.Hampton Inns& Suites (Midprice Hotels) |Startup costs $3,716,000 $13,148,800 in 2010

    5.Great Clips(Hair Salons) | Startup Costs $109,000 - $203,000 in 2010

    6.H&R Block(Tax Preparation and e-Filing)| Startup Costs $26,427 - $84,094 (11,200 partners in

    2004)

    7.Dunkin Donuts| Startup Costs $537,750 - $1,765,300 in 2010

    8.Jani-King(Commercial Cleaning | Startup Costs $11,400 - $35,050, (11,000 partners

    worldwide in 2004)

    9. Servo-Pro (Insurance and Disaster Restoration and Cleaning) | Startup Costs $102,250 -

    $161,150 in 2010

    10. MiniMarkets (Convenience Store and Gas Station) | Startup Costs $1,835,823 - $7,615,065 in

    2010

    The midi-franchises like restaurants, gasoline stations, trucking stations which involvesubstantial investment and require all the attention of a business.

    There are also the large franchises - hotels, spas, hospitals, etc. - which are discussed further inTechnological Alliances.

    Two important payments are made to a franchisor: (a) aroyaltyfor the trade-mark and (b)reimbursement for the training and advisory services given to the franchisee. These two fees maybe combined in a single 'management' fee. A fee for "Disclosure" is separate and is always a"front-end fee".

    A franchise usually lasts for a fixed time period (broken down into shorter periods, which eachrequire renewal), and serves a specific "territory" or area surrounding its location. One franchiseemay manage several such locations. Agreements typically last from five to thirty years, withpremature cancellations or terminations of most contracts bearing serious consequences forfranchisees. A franchise is merely a temporary business investment, involving renting or leasingan opportunity, not buying a business for the purpose of ownership. It is classified as a wastingasset due to the finite term of the license.

    A franchise can be exclusive, non-exclusive or 'sole and exclusive'.

    This section requiresexpansion.

    Although franchisor revenues and profit may be listed in afranchise disclosure document, nolaws require the estimate of franchiseeprofitability, which depends on how intensively thefranchisee 'works' the franchise. Therefore, franchisor fees are always based on 'gross revenuefrom sales' and not on profits realized. SeeRemuneration.

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    Various tangibles and intangibles such as national or internationaladvertising,training, and othersupport services are commonly made available by the franchisor.

    Franchise brokers help franchisors find appropriate franchisees. There are also main 'masterfranchisors' who obtain the rights to sub-franchise in a territory.

    According to theInternational Franchise Associationapproximately 4% of all businesses in theUnited States are franchisee-worked.

    It should be recognized[citation needed] that franchising is one of the only means available to accessventure investment capital without the need to give up control of the operation of the chain andbuild a distribution system for their services. After the brand and formula are carefullydesigned,and properly executed, franchisors are able to sell franchises and expand rapidly acrosscountries and continents using the capital and resources of their 'franchisees' while reducing risk.

    Franchisor rules imposed by the franchising authority are usually very strict and important in the

    US and most countries need to study them to help the small or start-up franchisee in theircountries to protect them.[citation needed] Besides the trademark, there are proprietary service markswhich may be copyright - and corresponding regulations.

    [edit] Obligations of the parties

    Each party to a franchise has several interests to protect. The franchisor is most involved insecuring protection for his trademark, controlling the business concept and securing hisknow-how. This requires the franchisee to carry out the services for which the trademark has beenmade prominent or famous. There is a great deal of standardization proposed. The place ofservice has to carry the franchisor's signs, logos and trademark in a prominent place. The

    uniforms worn by the staff of the franchisee have to be of a particular shade and colour. Theservice has to be in accordance to the pattern followed by the franchisor in his successfuloperations. Thus, for the franchisee he is not in full control of the business as he would be inretailing.

    A service can be successful by buying equipment and supplies from the franchisor or thoserecommended by the franchisor if they are not over-priced. A coffee brew, for example, can bereadily identified by the trademark when its raw materials come from a particular supplier. If thefranchisor requires purchase from his stores, it may come underanti-trust legislationorequivalent laws of other countries. So too the purchase of uniforms of personnel, signs, etc. Butit also applies to sites of franchise if they are owned or controlled by the franchisor.

    The franchisee must carefully negotiate the license. They, along with the franchisor mustdevelop a marketing plan or business plan. The fees must be fully disclosed and there should notbe any hidden fees. The start-up and costs and working capital must be known before taking thelicense. There must be assurance that additional licensees not crowd the "territory" if thefranchise is worked to plan. The franchisee must be seen as an independent merchant. He mustbe protected by the franchisor from any trademark infringement by third-parties. A franchiseattorney is required to assist the franchisee during negotiations.[6].

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    Most often the training period - the costs of which are in great part covered by the initial fee - istoo short to operate complicated equipment and the franchisee has to learn on his own fromManuals. The training period must be adequate but in low-cost franchises it would be consideredexpensive. Many frachisors have set up corporate universities to train staff online. This is inaddition to literature and sales documents and reach by email.

    Also, franchise agreements carry no guarantees orwarrantiesand the franchisee has little or norecourse to legal intervention in the event of a dispute[7]. Franchise contracts tend to beunilateral contracts in favor of the franchisor; they are generally protected from lawsuits fromtheir franchisee because of the non-negotiable contracts that require franchisees to acknowledge,in effect, that they are buying the franchise knowing that there is risk, and that they have not

    been promised success or profits by the franchisor. Contracts are renewable at his sole option.Most franchisors make franchisees sign agreements waiving their rights under federal and statelaw, and in some cases allowing the franchisor to choose where and under what law any disputewould be litigated

    [edit] Regulations

    [edit] The U.S.

    Isaac Singer, in the 1850s, who made improvements to an existing model of a sewing machine,was among the first franchising efforts in the United States, followed later by Coca-Cola,Western Union, etc.[8]and agreements between automobile manufacturers and dealers.[9]

    Modern franchising came to prominence with the rise of franchise-based food serviceestablishments. In 1932, Howard Deering Johnson established the first modern restaurantfranchise based on his successful Quincy, MassachusettsHoward Johnson'srestaurant founded

    in the late 1920s.[10][11]

    The idea was to let independent operators use the same name, food,supplies, logo and even building design in exchange for a fee.

    The growth in franchises picked up steam in the 1930s when such chains asHoward Johnson'sstarted franchising motels.[12]The 1950s saw a boom of franchise chains in conjunction with thedevelopment of the U.S. Interstate Highway System.

    In the U.S. the FTC requires that the franchisee be furnished with a Disclosure Agreement by theFranchisor, at least ten days before money changes hands. The final agreement is always anegotiated document setting forth the fees and other terms. Whereas elements of the disclosuremay be available from third parties only that provided by the franshisor can depended upon. The

    U.S. Disclosure Document (FDD) is very lengthy (300-700 pp +)and detailed (see UFOC forelements of disclosure), and generally provides audited financial statements of the franchisor in aparticular format, although audited financial statements may not be required under somecircumstances, such as where a franchisor is new. It will include data on the names, addressesand telephone numbers of the franchisees in the licensed territory (who may be contacted andconsulted before negotiations), estimate of total franchise revenues and franchisor profitability.The States may require the FDD to contain specific requirements but the requirements in theState disclosure documents must be in compliance with the Federal Rule that governs federal

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    regulatory policy. There is noprivate right of actionof action under the FTC Rule for franchisorviolation of the rule but fifteen or more of the States have passed statutes that provide this rightof action to franchisees when fraud can be proved under these special statutes. The majority offranchisors have inserted mandatory arbitration clauses into their agreements with theirfranchisees, in some of which the U.S. Supreme Court has dealt with.

    There is no federal registry of franchises or any federal filing requirements for information.States are the primary collectors of data on franchising companies, and enforce laws andregulations regarding their presence and their spread in their jurisdictions.

    Where the franchisor has many partners, the agreement may take the shape of a business formatfranchise - an agreement that is identical for all franchisees.

    [edit] Europe

    Franchising has grown rapidly in Europe in recent years, but the industry is still largely

    unregulated. Unlike the United States, the European Union has yet to adopt a uniform franchisedisclosure policy. Only five countries in Europe have adopted pre-sale disclosure obligations.They are France (1989), Spain (1996), Romania (1997), Italy (2004) and Belgium (2005).[13]

    The Code of Ethics of the European Franchising Federation is self-enforced in seventeenEuropean states where their national franchise associations are members of EFF members, andUNIDROIT.

    All formal disclosure countries are require to give Contract Summaries to be furnished,highlighting:

    the object of the contract the rights and obligations of the parties

    the financial conditions

    the term of the contract

    Legal consultation is a must to enter and finalize the agreement(s) as it in all regions. Most oftenone of the principal tasks in Europe is to find retail space, not so significant a factor in the US.This is where the franchise broker, or the master franchisor, plays a significant role. Culturalfactors are also significant as the populations tend to be homogeneous.

    [edit] France

    France is one of Europes largest market. Similar to the United States, it has a long history offranchising, dating back to 1930s. Growth came in the 70s. The market is considered tough foroutside franchisors because of its cultural angularities; yet, McDonalds and Century 21 are tofound everywhere. There are some 30 US Firms involved in franchising.[14].

    There are no government agencies regulating franchises. The Loi Doubin of 1989 was the firstEuropean Franchise Disclosure law. Combined with and Decree No. 91-337 they regulate

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    disclosure although it applies to any person who provides to another person a corporate name,trademark or trade name other business arrangements. The law applies to exclusive or quasi -exclusive territory.

    In brief, the disclosure document must be delivered at least 20 days before the execution of the

    agreement or any payments are made.

    The specific and important disclosures to be made are[15]

    a) the date of the founding of the franchisor's enterprise and a summary of its business history

    and all information necessary to assess the business experience of the franchisor including

    bankers

    b) a description of the local market for the goods or services

    c) franchisor's financial statements for the previous two years,

    d) a list of all other franchisees currently in the network

    e) all franchisees who have left the network during the preceding year, whether by termination

    or non-renewal, and

    f) the conditions for renewal, assignment,termination and the scope of exclusivity.

    Initially, there was some uncertainty whether any breach of the provisions of the Doubin lawwould enable the Franchisee to walk away from the contract. However, the Supreme Court (Courde cassation) eventually ruled that agreements should only be annulled where the missing orincorrect information affected the decision of the franchisee to enter into the Agreement. The

    burden of proof is on the franchisee.[16]

    Dispute Settlement features are only incorporated in some European countries. By not beingrigorous, franchising is encouraged.

    [edit] Spain

    Legal definition of Franchising in Spain is the activity in which an undertaking, the franchisor,grants to another party, the franchisee, for a specific market and in exchange of an economicfinancial compensation (either direct, indirect or both) the right to exploit an own system tocommercialize products or services already exploited by the franchisor with enough success and

    experience.

    The Spanish Retail Trading Act regulates franchising[17]. The contents of the Franchise mustinclude, at least:

    The use of a common name or brand or any other intellectual property right and a uniform

    presentation of the premises or the transport means included in the agreement.

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    The communication by the franchisor to the franchise of certain technical knowledge or a

    substantial and singular know-how that has to be owned by the franchisor, and

    A technical or commercial assistance or both, provided by the franchisor to the franchisee

    during the agreement, without prejudice of any supervision faculty that the parties could freely

    agree in the contract.

    In Spain, the franchisor submits the Disclosure information 20 days prior to the signature of theAgreement or prior to any payment made by the franchisee to the franchisor. Franchisors shoulddisclose to the potential franchisee some specific information in writing. This information has tobe true and not misleading and includes:

    Identification of the franchisor;

    Justification of ownership or license for use of any trademark or similar sign and judicial claims

    affecting them as well as the duration of the license;

    General description of the sector in which operates the franchise;

    Experience of the franchisor;

    Contents and characteristics of the franchise and its exploitation;

    Structure and extension of the network in Spain;

    Essential elements of the franchise agreement.

    Franchisors (with some exceptions) should be registered in the Franchisors Register and providesome information. According to the regulation in force in 2010 this obligation has to be donewithin the term of three months since the starting of its activities in Spain.[18]

    [edit] Italy

    Under the Italian law franchise[19]is defined as an arrangement between two financiallyindependent parties where a franchisee is granted, in exchange for consideration, the right tomarket goods and services under trademarks. In addition, articles which dictate the form andcontent of the franchise agreement and define the documents that must be made available 30days prior to execution. The franchisor must disclose:,

    a) a summary of the franchise activities and operations,

    b) a list of franchisees currently operating in the franchise system in Italy,

    c) year-by-year details of the changes in the number of franchisees for the previous three years

    in Italy,

    d) a summary of any court or arbitral proceedings in Italy related to the franchise system, and

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    e) if requested by the franchisee, copies of franchisor's balance sheets for the previous three

    years, or, since start-up if period is shorter.

    [edit] China

    China has the most franchises in the world but the scale of their operations is relatively small.Each system in China has an average of 43 outlets, compared to more than 540 in the UnitedStates. Together, there are 2600 brands in some 200,000 retail markets. KFC was the mostsignificant foreign entry in 1987 and is widespread[20]Many franchises are in fact joint-ventures,as at their forming the franchise law was not explicit. For example, McDonalds is a joint venture.Pizza Hut, TGIF, Wal-mart, Starbucks followed a little later. But total franchising is only 3% ofretail trade which is hungry for foreign franchise growth.

    The year 2005 saw the birth of an updated franchise law[20], "Measures for the Administration ofCommercial Franchise"[21]. Previous legislation (1997) made no specific inclusion of foreigninvestors. Today the Franchise Law is much clearer by virtue of the 2007 law[22], a revision of

    the 2005 Law.

    The laws are applicable if there are transactions involving a trademark combined with paymentswith many obligations on the franchiser. The Law comprises 42 Articles and 8 chapters.

    Among the franchisor obligations are:

    the FIE (foreign-invested enterprise) franchisor must obtain registration by the regulator

    The franchisor (or its subsidiary) must have operated at least operated two company-

    owned franchises in China (revised to anywhere)for more than 12 months ("the two-

    store, one-year rule)

    the franchisor must disclosure anyinformation requested by the franchisee cross-border franchising, with some caveats, is possible (2007 law).

    The franchisor must meet a list of requirements for registration, among which are:

    the standard franchise agreement, working Manual and working capital requirements,

    track-record of operations, and ample ability to supply materials, and

    the ability to train the Chinese personnel and provide them

    long-term operational guidance.

    the franchise agreement must have a minimum three-year term

    Among other provisions is:

    the franchisor will be liable for certain actions of its suppliers

    monetary and other penalties apply for infractions of the regulations.

    The Disclosure has to take place 20 days in advance. It has to contain:

    Details of the franchisors experience in the franchised business with scope of business

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    identification of the franchisors principal officers

    litigation of the franchisor during the past five years

    full details about all franchise fees

    the amount of a franchisees initial investment

    a list of the goods or services the franchisor can supply, and the terms of supply

    the training franchisees will receive

    information about the trademarks,including registration, usage, and litigation

    demonstration of the franchisors capabilities to provide training and guidance

    statistics about existing units, including number, locations, and operational results, and

    the percentage of franchises that have been terminated; and

    an audited financial report and tax information (for an unspecified period of time)

    Other elements of this legislation are:

    the franchisees confidentiality obligations continue indefinitely after termination or

    expiration of the franchise agreement

    if the franchisee has paid a deposit to the franchisor, it must be refunded on

    termination of the franchise agreement; and, upon termination, the franchisee isprohibited from continuing to use the franchisors marks.

    [edit] Australia

    InAustralia, franchising is regulated by the"Franchising Code of Conduct", a mandatorycode ofconductmade under theTrade Practices Act 1974.

    The Code requires franchisors to produce a disclosure document which must be given to aprospective franchisee at least 14 days before the franchise agreement is entered into.

    The Code also regulates the content of franchise agreements, for example in relation tomarketing funds, acooling-off period, termination and theresolution of disputesbymediation.

    The federal government is currently considering recommended changes to the Code of Conductcontained in the report, "Opportunity not Opportunism: Improving conduct in AustralianFranchising" tabled by a Parliamentary inquiry into franchising on 4 December 2008.[23]

    Some experts have warned that any push to increase regulation of the franchising sector, couldmake it a less attractive means of doing business.[24]

    [edit] Russia

    In Russia, under chapter 54 of the Civil Code (passed 1996), franchise agreements are invalidunless written and registered, and franchisors cannot set standards or limits on the prices of thefranchisees goods. Enforcement of laws and resolution of contractual disputes is a problem:Dunkin' Donutschose to terminate its contract with Russian franchisees that were selling vodkaand meat patties contrary to their contracts, rather than pursue legal remedies.[25]

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    [edit] UK

    In the United Kingdom, there are no franchise-specific laws; franchises are subject to the samelaws that govern other businesses. For example, franchise agreements are produced under regularcontract law and do not have to conform to any further legislation or guidelines.[26]There is some

    self-regulation through the British Franchise Association (BFA).

    However there are many franchise businesses which do not become members, and manybusinesses that refer to themselves as franchisors that do not conform to these rules.[citation needed]There are several people and organisations in the industry calling for the creation of a frameworkto help reduce the number of "cowboy" franchises and help the industry clean up its image.[who?]

    On 22 May 2007, hearings were held in the UK Parliament concerning citizen initiated petitionsfor special regulation of franchising by the government of the UK due to losses of citizens whohad invested in franchises. The Minister of Industry, Margaret Hodge, conducted hearings butresisted any government regulation of franchising with the advice that government regulation of

    franchising might lull the public into a false sense of security. The Minister of Industry indicatedthat if due diligence were performed by the investors and the banks, the current laws governingbusiness contracts in the UK offered sufficient protection for the public and the banks.[27]

    [edit] Brazil

    In 2008, there were about 1,013 franchises[28]with more than 62,500 outlets, making it one ofthe largest countries in the world in terms of number of units. Around 11 percent of this total areforeign-based franchisors.

    The Brazilian Franchise Law (Law No. 8955 of December 15, 1994) defines the franchise as a

    system in which the franchisor licenses the franchisee, for a payment, the right to use atrademark/ patent along with the right to distribute products or services on an exclusive or semi-exclusive basis. The "Franchise Offer Circular" or disclosure document is mandatory beforeexecution of agreement and is valid for all of Brazilian territory. Failure to disclose voids theagreement with refunds and serious damages.The Franchise Law does not distinguish betweenBrazilian and foreign franchisors. The National Institute of Industrial Property (INPI) is theregistering authority. Indispensable documents are the Statement of Delivery (of disclosuredocumentation) and Certification of Recording (INPI). The latter is necessary for payments. Allsums amounts may not be convertible into foreign currency. Certification may also meancompliance with Brazil's antitrust legislation.

    Parties to international franchising may decide to adopt the English language for the document,as long as the Brazilian party knows English fluently and expressly acknowledges that fact, toavoid translation (but it follows). The Registration accomplishes three things:

    *It make the agreement effective against third parties

    * Permits the remittance of payments

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    * Qualifies the franchisee for tax deductions

    Page reference in franchising in this country: Guide of Franchising - Guia do Franchising(http://www.guiadofranchising.com.br)

    [edit] India

    Franchising of goods and services, foreign to India, is in its infancy. The first InternationalExhibition was only held in 2009.[29]. India is, however, one of the biggest franchising marketsbecause of its large middle-class of 300 million who are not reticent on spending and because thepopulation is entrepreneurial in character. In a highly diversified society, (seeDemographics ofIndia) McDonalds is a success story despite its fare differing from the rest of the world.[30]

    Thus far, a franchise agreement is a contract between the franchisor and the franchisee governedby the Contract Act 1872 and the Specific Relief Act, 1963 which provides for both specificenforcement of covenants in a contract and remedies in the form of damages for breach of

    contract.

    [edit] Kazakhstan

    In Kazakhstan franchise turnover for 2010 is 1 billion US$ dollars per year. Kazakhstan is theleader in Central Asia in franchising market. There is a special law on the franchising of 2002,there are about 300 franchise systems and franchises near the 2000 outlets[31]Kazakhstanfranchise begins with the emergence of a factory "Coca-Cola", open to sublicense Turkishlicensor same brand. The plant was built in 1994. Also in presented through franchise systemcountry presented Pepsi, Hilton, Marriott, Intercontinental, Pizza Hut etc.

    [edit] Social franchises

    In recent years, the idea of franchising has been picked up by thesocial enterprisesector, whichhopes to simplify and expedite the process of setting up new businesses. A number of businessideas, such as soap making, wholefood retailing, aquarium maintenance, and hotel operation,have been identified as suitable for adoption by social firms employing disabled anddisadvantaged people.

    The most successful example is probably theCAP Markets, a steadily growing chain of some 50neighborhoodsupermarketsinGermany. Other examples are theSt. Mary's Place HotelinEdinburghand theHotel TritoneinTrieste.

    Social franchisingalso refers to a technique used by governments and aid donors to provideessential clinical health services in the developing world.

    [edit] Event franchising

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    Event franchising is the duplication of publiceventsin other geographical areas, while retainingthe originalbrand(logo), mission, concept and format of the event.[32]As in classic franchising,event franchising is built on precisely copying successful events. Good example of eventfranchising is theWorld Economic Forum, or justDavosforum which has regional eventfranchisees inChina,Latin Americaetc. Likewise, the alter-globalistWorld Social Forumhas

    launched many national events.When The Music Stopsis an example of an events franchise intheUK, in this case, runningspeed datingand singles events.

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