Definition
Franchising is an individual / company that supplied by the franchisor rights by purchasing rights for the area and period. While
the franchisor is a company which entitles the other party to
distribute the products / services using the brand, logo and its
operating system. In the Indonesian language is called franchising franchise. Each country has its own definition of a franchise. America
through the International Franchise Association (IFA) defines
franchising as a contractual relationship between the franchisor to the
franchise, which means the relationship between the franchisor with
franchise very kontarktual, where the franchisor is obliged to safeguard
the interests of sustainable (continue) in the field of business
carried on by the franchise for example through training, in under
the same trademark, format and operational standards or control of the
owner (franchisor), where the franchisee menamankan investment in the
business from its own sources. In
the process, there was a contractual relationship between the
franchisor (brand owners) with the franchisee (receiver brand). For
example, in the case of special training should be given to the
franchisee to maintain the stability of the product, format and
operational standards in accordance with the provisions that have been
determined, the image of a brand. Business activities with the franchise system will be different with the conventional business activities. In
the event of a franchise agreement between the owner of the brand and
the recipient of the brand, because basically this activity franchisee
just purchased the licensing rights of a trademark owner to be able to
run a trade with a particular format in a previous agreement. Furthermore, brand owners will only run control. In franchisor or franchisee there are various terms that we need to know as well, including:
· Franchisor: Franchise giver
· Franchisee: franchise receiver
· Franchise fee: a charge on the purchase of licensing rights within a certain time.
· Royalty fee: a fee contribution given by the franchisee to the franchisor futures.
· Master franchising: meeupakan granting rights to the franchisee for a particular wilayak. So the franchisee the right to download it again sub franchise business for some firms laih in certain agreed areas.
Advertising fee: cost contribution from the franchisee to the franchisor on a national promotional activities.
Franchise history
In Indonesia franchise (franchise) is known since the 70s when the entry Shakey Pisa, KFC, and Burger King Swensen. Seen very rapid development began around 1995. Data Deperindag in 1997 recorded about 259 franchisee companies in Indonesia. Should
be recognized that the development is very rapid at all, from year to
year is very much despite franchisee franchise in decline ever since the
monetary crisis in Indonesia. At that foreign franchisees in Indonesia was forced to close down because the value of the rupiah plunged very deep. The
franchisee especially foreigners forced to close down because of the
crisis around 1998, until 2000pun the foreign franchise still waiting to
go to Indonesia. That's
because the economic and political situation in Indonesia is still far
below the stability, meaning that in Indonesia at that time and the
political economy is very unstable. New in 2003 the franchise in the country was experiencing rapid growth. Franchise first known in the world in 1851 by the Singer Sewing Machine Company, Singer sewing machine manufacturer. The
pattern was followed by the automotive company General Motors Industry
that sells vehicles to appoint distributor franchise in 1898. Subsequently, followed by soft drink companies in the United States as a distribution channel in the U.S. and other countries. While in the UK franchise pioneered by J Lyons through his efforts Wimpy and Golden Egg on 60s decade. From year to year franchising business continues to grow rapidly.
Types of franchise
Based on the criteria used, we can distinguish the type of franchise. In general, we can distinguish the franchise industrial and commercial franchise:
1. Franchise industrial entrepreneurship is a form of cooperation between businessmen (manufacturer). Franchisor is the owner of the system manufacture and / or exclusive license. Here,
the franchisor provides employers (manufacturer) other manufacturing
systems exploit the rights and / or exclusive brefet and operate in a
limited area. Because
with all the means that will allow the franchisee owned businesses that
do business with the franchisor, by copying the formula and methodology
are transferred. Therefore, the franchisor to the franchisee did not submit integralitas of production procedures but only partially.
2. Commercial Franchise, consisting of:
·
Franchise distribution: is the franchise that aims to commercialize one
or more products, which are usually produced by the franchisor or
franchisor is exclusively distributed by
·
Franchise distribution of services: corporate object consists of one or
unity of the service, which was commercialized by the franchisee, based
on the methodology that he received from the franchisor. This type of franchise requires tight control of the franchisor in order to achieve a satisfactory quality of service.
3. Mix Franchise Franchise is where the object of commercialization is a combination of products and services.
Examples of franchising
1. Examples of domestic franchising
English lessons (softskill)
Definition
Franchising is an individual / company that supplied by the franchisor rights by purchasing rights for the area and period. While
the franchisor is a company which entitles the other party to
distribute the products / services using the brand, logo and its
operating system. In the Indonesian language is called franchising franchise. Each country has its own definition of a franchise. America
through the International Franchise Association (IFA) defines
franchising as a contractual relationship between the franchisor to the
franchise, which means the relationship between the franchisor with
franchise very kontarktual, where the franchisor is obliged to safeguard
the interests of sustainable (continue) in the field of business
carried on by the franchise for example through training, in under
the same trademark, format and operational standards or control of the
owner (franchisor), where the franchisee menamankan investment in the
business from its own sources. In
the process, there was a contractual relationship between the
franchisor (brand owners) with the franchisee (receiver brand). For
example, in the case of special training should be given to the
franchisee to maintain the stability of the product, format and
operational standards in accordance with the provisions that have been
determined, the image of a brand. Business activities with the franchise system will be different with the conventional business activities. In
the event of a franchise agreement between the owner of the brand and
the recipient of the brand, because basically this activity franchisee
just purchased the licensing rights of a trademark owner to be able to
run a trade with a particular format in a previous agreement. Furthermore, brand owners will only run control. In franchisor or franchisee there are various terms that we need to know as well, including:
· Franchisor: Franchise giver
· Franchisee: franchise receiver
· Franchise fee: a charge on the purchase of licensing rights within a certain time.
· Royalty fee: a fee contribution given by the franchisee to the franchisor futures.
· Master franchising: meeupakan granting rights to the franchisee for a particular wilayak. So the franchisee the right to download it again sub franchise business for some firms laih in certain agreed areas.
Advertising fee: cost contribution from the franchisee to the franchisor on a national promotional activities.
Franchise history
In Indonesia franchise (franchise) is known since the 70s when the entry Shakey Pisa, KFC, and Burger King Swensen. Seen very rapid development began around 1995. Data Deperindag in 1997 recorded about 259 franchisee companies in Indonesia. Should
be recognized that the development is very rapid at all, from year to
year is very much despite franchisee franchise in decline ever since the
monetary crisis in Indonesia. At that foreign franchisees in Indonesia was forced to close down because the value of the rupiah plunged very deep. The
franchisee especially foreigners forced to close down because of the
crisis around 1998, until 2000pun the foreign franchise still waiting to
go to Indonesia. That's
because the economic and political situation in Indonesia is still far
below the stability, meaning that in Indonesia at that time and the
political economy is very unstable. New in 2003 the franchise in the country was experiencing rapid growth. Franchise first known in the world in 1851 by the Singer Sewing Machine Company, Singer sewing machine manufacturer. The
pattern was followed by the automotive company General Motors Industry
that sells vehicles to appoint distributor franchise in 1898. Subsequently, followed by soft drink companies in the United States as a distribution channel in the U.S. and other countries. While in the UK franchise pioneered by J Lyons through his efforts Wimpy and Golden Egg on 60s decade. From year to year franchising business continues to grow rapidly.
Types of franchise
Based on the criteria used, we can distinguish the type of franchise. In general, we can distinguish the franchise industrial and commercial franchise:
1. Franchise industrial entrepreneurship is a form of cooperation between businessmen (manufacturer). Franchisor is the owner of the system manufacture and / or exclusive license. Here,
the franchisor provides employers (manufacturer) other manufacturing
systems exploit the rights and / or exclusive brefet and operate in a
limited area. Because
with all the means that will allow the franchisee owned businesses that
do business with the franchisor, by copying the formula and methodology
are transferred. Therefore, the franchisor to the franchisee did not submit integralitas of production procedures but only partially.
2. Commercial Franchise, consisting of:
·
Franchise distribution: is the franchise that aims to commercialize one
or more products, which are usually produced by the franchisor or
franchisor is exclusively distributed by
·
Franchise distribution of services: corporate object consists of one or
unity of the service, which was commercialized by the franchisee, based
on the methodology that he received from the franchisor. This type of franchise requires tight control of the franchisor in order to achieve a satisfactory quality of service.
3. Mix Franchise Franchise is where the object of commercialization is a combination of products and services.
Examples of franchising
1. Examples of domestic franchising
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