Franchising

FRANCHISING

1. Franchisee: definition and obligations.

The franchisee is that entire natural or juridical person who, by means of certain conditions, obtains the right to commercialize andexploit products or services under skills uniform and experienced with proven profitability and with a registered trademark.

Since counterpart to the contributions of the franchisor the franchisee willhave to:

* To pay the whole of the necessary investment to install and decorate his establishment according to detailed project of the franchisor.
* To pay to the franchisor the canons of entryand periodic payments established in exchange for the permanent services that receives of him
* To have the sufficient stock in quality and variety according to the minimums that the franchisorestablishes.
* To apply the price of sale advised by the franchisor.
* To respect all the aspects related to the corporate image of the franchise.
* To accept the periodic controls of thefranchisor and to report continued of the evolution of his business, accepting the possible modifications that the franchisor could impose for the obtaining of positive results.
* To respect theterritorial exclusivities and of brand.
* Commitment of assistance to the training courses that the franchisor realizes.
* Use the methods of work, commercial directives and of generalmanagement that the franchisee transmits across the Manuals.
* To respect the characteristics of the commercial system and of management that defines the franchise in question.

2. The franchise:definition and problems
The franchise system has some basic assumptions in order to develop in perfect condition:

* The contract is the cornerstone of the entire franchise system. Should be studiedextensively, detailed, clear, precise and secure compliance.

* Award of trademark usage. The strength and solidity of a franchise network is based on consistent brand image that is transmitted…

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