Download Franchising For Dummies (For Dummies (Business & Personal by Michael Seid, Dave Thomas PDF

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By Michael Seid, Dave Thomas

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The goal in a good franchise system is to establish the right number of units in the right locations to ensure that consumers see the brand frequently, which is known as brand penetration. When too many units are close by, and that proximity negatively affects unit sales, we call that encroachment. Not all territorial rights are permanent, and the franchisor may only be providing you with those rights for a limited period of time. You may also have to reach certain levels of performance to keep those rights.

Franchisees who over time acquire additional franchises are likely to find variations between their original contract with the franchisor for the first unit and the new franchise agreement for later units. Additionally, many franchise agreements provide for what is called a cross-default. This provision allows the franchisor to consider a violation of one of the agreements to be a violation of all the agreements. As with all franchise agreements, you should have a franchise attorney review the franchise agreement and other documents provided to you by your franchisor.

Indeed, in the gambling capital of the world, Nevada, 20 percent of its private sector workforce is employed because of franchising. S. S. economy shortly after the turn of the millennium on the bonus CD-ROM (CD0101). S. private sector economy. The study now being conducted by PWC for the IFAEF will examine 120 distinct lines of business that are currently using franchising. 13 14 Part I: Franchising Basics: Separating the Myths from the Facts Although industry facts and statistics are fun and somewhat useful, the only truly meaningful statistic when you’re examining a franchise opportunity is how well the franchisees in that system are doing.

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