Table of Contents
Can you own multiple different franchises?
A franchisee can own more than one franchise of the same brand. Being a multi-unit franchisee is different than single-unit franchise ownership, however, which requires hands-on involvement.
Can a franchisor compete with a franchisee?
A franchise agreement may contain express terms that prevent a franchisor from competing with the franchisee. Any contractual limitation may only operate in the franchisee’s territory if the franchise agreement provides the franchisee with an exclusive territory.
What is multi brand franchising?
Multi-brand franchising is exactly what it sounds like. It’s opening up several franchises under different brand names. This is quite different than owning multiple franchise locations. Instead of operating under one umbrella, each franchise operates individually. Each brand might have a different concept.
Can franchisees become competitors in the future?
Franchisees will gain in-depth knowledge of your business and some may subsequently try to use it to set up as competitors. You must be sure that the people you select as franchisees can accept the responsibility and stress of running a business.
What is a piggyback franchise?
Piggyback (Combination) Franchising- “Piggyback” or “Combination Franchising”, as it is sometimes known, is in essence a business within a business i.e. a combination of two franchises operating under the same roof. Part of a franchise’s value is the right to use a recognized trademark.
What is Tandem franchising?
Tandem franchising is a franchise model unique to South Africa and an effective tool for the implementation of black economic empowerment (BEE) initiatives in that country [1]. The basic structure involves a joint venture arrangement between a franchisor, which acts as an appointed mentor, and a new franchisee.
How do you create a franchise brand?
The following are the steps to franchise your business:
- Determine if Franchising is Right for Your Business.
- Franchise Disclosure Document.
- Operations Manual.
- Register Your Trademarks.
- Establish Your Franchise Company.
- Register and File Your FDD.
- Create Your Franchise Sales Strategy and Set a Budget.