1. Karen Tatiana Jaramillo
Maribel Urquina Tovar
FRANCHISING

2. WHAT IS FRANCHISING?
Transfer Technology
Business System
Brand Name
Trademark
And others property rights

3. WHO ARE IMPLICATED IN THE FRANCHISE?
Franchisor Franchisee
• Developed the • Buys the right to
business or operate under
product. the franchisor’s
• Lends its name brand name or
or trademark to trademark.
it.

4. WHO ARE IMPLICATED IN THE FRANCHISE?
(CONT.)
The franshisee The franchisor
depends on the depends on the
franshisor for the frenchisee for
business system royalities or fees.

5. THE FRANCHISE AGREEMENT
3. A detailed
1. A detailed 2. A detailed 5. A detailed
list of issues 4. A detailed
list of issues to list of issues to list of issues
pertaining to list of issues
consider consider pertaining to
the buildings, pertaining to
regarding the regarding the termination
equipment, the operating
cost of the location of the and renewal
and supplies practices terms
franchise franchise terms
terms

6. ADVANTAGES AND DISVADVANTAGES OF
FRANCHISING
- Is an inexpensive way of exploiting a foreing market
- Little or no political risk is involved
- The risks of failure and its associated costs are borne by the
franchisee
- It is a fast and relatively easy (brand name and standardized
business system)
- The franchisee may spoil the franchisor's image
by not upholding the standards for quality
established by the franchisor
- Exercising control over the franchisee may be
very difficult
- Franchisees may attempt to deviate from the
polices and standards established by the franchisor
- Franchisees may fight attempts by the franchisor
to implement changes
-The franchisor is able to terminate the agreement.

7. EXAMPLES
 In the following link you can find several
options where franchises offer the best
benefits to the franchisee
http://www.100franquicias.com.co/franquicias
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