Information Science and Technology in Franchising

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Understanding The Franchisor

In this section we examine the day-to-day operational activities at the franchisor headquarters. Figure 1 illustrates the interactions of the franchisor with all four of its entities: business units, prospective franchisees, suppliers, and government; as well as performing relevant activities (represented by rectangles): marketing its products and services, assisting in creating distinguished brand names indispensable in attracting new customers, selling to the franchisees, and handling the diversified financing quandaries.

Figure 1.

Understanding the franchisor

Key Terms in this Chapter

Franchisor/Franchisee Learning Process: The stages of learning, including Beginner, Novice, Advanced, Master, and Professional.

Franchisor: The individual or business who grants the business rights.

Franchisor/Franchisee Relationship Management: The vital factor for the success of a franchise, including: Knowledge, Attitude, Motivation, Individual Behavior, and Group Behavior.

Franchising: A business opportunity based on granting the business rights and collecting royalties in return.

Franchisee: The individual or business who receives the business rights and pay the royalties for using the rights.

Franchisee Life Cycle: The stages a franchisee goes through in the franchise system: Courting, “We,” “Me,” Rebel, Renewal.