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 The transfer of Intellectual Property Rights (IPR ) including but not limited to Trademarks and Technical know-how  Provides added value to the business.

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Presentation on theme: " The transfer of Intellectual Property Rights (IPR ) including but not limited to Trademarks and Technical know-how  Provides added value to the business."— Presentation transcript:

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2  The transfer of Intellectual Property Rights (IPR ) including but not limited to Trademarks and Technical know-how  Provides added value to the business operation between two parties Franchisee and Franchisor

3 As market entry barriers break down globally … Love Marks (Brand) + Technical Know-how + Economies of Scale =

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5 What Type of Business Sectors?  Health and Beauty  Leisure and Travel  Motoring  Logistics  Real Estate  Food and Beverage  Home Improvements  TV and Media services  Management Services  Fashion and Lifestyle  …and more

6 OPERATIONAL BENEFITS TO THE FRANCHISOR FINANCIAL BENEFITS TO THE FRANCHISOR  Expand without the risk of high capital expenditure and debt accrual  Capital injections from franchise fees  Cash flow benefits from management service fees– MSF  Less risk of Management Fraud  Lower Human Resource liabilities  Marketing Power Brand managers achieve 'first-in-mind' levels of recognition = more bang for the buck in MARCOMS activity  Market Share Extended geographical penetration = customers accessibility = brand loyalty  Group Purchasing Strength Increased volumes + centralized buying = competitive pricing structures  Fast, Effective, Geographical Expansion Use of the local expertise = better results in a shorter time-frame  Rationalized Central Management Operating and managing = less demands on core organisation infrastructure

7 FINANCIAL BENEFITS TO FRANCHISEES OPERATIONAL BENEFITS TO FRANCHISEES  Lower development costs  Reduced capital expenditure  Quicker ‘payback’ period  Centralised development costs  Power purchasing  Improved NP  A tried and tested business formula  A brand identity  A shortened learning curve  Education and know– how  Network support

8  Business management reputation  Financial feasibility  Differentiation  Transfer of know-how  Flexibility  Market trends and conditions  Proven business system  Capital resource  Competent and experienced executive team

9  Develop a “System of Critical Assets” required to support and sustain a successful franchise  The “Critical Assets System” covers over 150 aspects of your business  The result will be a fully- pledged franchise operating system

10 1 Evaluation 2 Assignment 3 Operations

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14 Specialist support The business plan The marketing tools and strategies The legal framework The operating manuals The management control system

15 EVALUATION 1-12 weeks ASSIGNMENT 9-18 weeks OPERATIONS 1-32 weeks


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