International Franchising Victoriya Shepeleva What is Franchising

International Franchising Victoriya Shepeleva

What is Franchising?

PURPOSES OF FRANCHISING The nature of franchise business is the recent innovation in the form of business. The main purposes that are set to be achieved through franchise business include the following: 1. To restore individual entrepreneurship. 2. To provide an easily recognized and accepted product or service. 3. To compete with big business. 4. To allow consumers to buy good quality items or services at the right price yet still deal with a local merchant. 5. To provide entrepreneurs a means to enter business with a low capital investment and risk. The nature of franchise business usually fits in the process of small business. Entrepreneurial initiatives can get access to extra-territorial business through franchise. One can get to business with much of technical and financial arrangement.

About franchising Franchising is the practice of using another firm's successful business model. The word 'franchise' is of Anglo-French derivation from franc - meaning free, and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees.

About franchising The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the operator pays the supplier a fee. Thirty three countries, including the United States, and Australia, have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect impact on franchising.

Franchising in Kazakhstan In Kazakhstan franchise turnover for 2010 is 1 billion US$ dollars per year. Kazakhstan is the leader in Central Asia in the franchising market. There is a special law on franchising which went into effect in 2002. There about 300 franchise systems and the number of franchised outlets approaches 2000. Kazakhstan franchising began with the emergence of a "Coca-Cola" factory, opened to sublicense a Turkish licensor of the same brand. The plant was built in 1994. Other brands that are also present in Kazakhstan through the franchise system include Pepsi, Hilton, Marriott, Intercontinental, and Pizza Hut.

Terms International Franchise Association – Международная Ассоциация Франчайзинга Franchising - договор коммерческой концессии, заключается с целью создания пользователем новых предприятий под известным уже фирменным наименованием, товарным знаком и с использованием целого комплекса объектов интеллектуальной собственности, принадлежащих третьему лицу – правообладателю

Terms Franchise – франчайзинг Franchisee – франчайзи Franchiser – франчайзер Franchise fee – франчайзинговый платеж

Thank you for your attention!