Roles and responsibilities

While specific roles and responsibilities vary across franchise systems, the following seem to be the norm:

• The franchisor provides an established, tried-and-tested business system, which includes an established brand name and trademark.

• The franchisor benefits from the franchisees’ financial and management investment in terms of network growth with minimal capital investment. In return the franchisor offers training and ongoing support services for a management service fee. Training is typically arranged for both franchisee and key staff members and may involve theoretical classroom as well as practical on-the-job training.

• An operations manual, marketing and advertising support and assistance in setting up are typically included in the franchise package.

• Most franchisors assist franchisees in site selection and provide guidelines on the purchase of inventory and equipment.

• Franchisors may assist with negotiating group insurance and assist in recruiting key staff, however, this is not always the case.

• Franchisors operating as nominated suppliers can be a tricky one. However, this is negated if the supply relationship is competitive, transparent at all times and acts in the best interest of the franchise network.

• Franchisees get a blueprint on how to succeed in the chosen business system when investing in a franchise, which really is a proven business system with the supporting business package and established brand. It is their responsibility to market the brand locally, follow the operating guidelines and use the support systems to attract and retain customers.

• Other responsibilities include maintaining the franchisors standards, methods, techniques and marketing strategies.

• Investing in a franchise does not negate the entrepreneurial responsibilities of the franchisee. The performance of the business remains the responsibility of the franchisee, with the comfort of being in business for yourself but not by yourself.

What are the main things a franchisee should pay special attention to in order to run a franchise successfully?

-see the benefits of the franchising model

-see the amount of your responsibilities as a franchisee in particular of this business (for example: finding suppliers, negotiating prices and so on, it also places a lot of obligations on you)

-it’s important to take the time to read through all of the requirements in detail, and make sure you’re not making any missteps

-see a database of customers

-analyze the territory, clients, their desire and interests

-try to understand it’s a profitable business or not

-how much efforts you should make in order to develop, support, improve this business

-try to understand if you are ready or not inside to work in this way or not

-pay close attention to the documentation you’re given and the training you receive, and stay in close contact with your franchisor to make sure you’re on track

Successful small businesses sometimes grow through a practice known as franchising. In a typical franchising arrangement, a successful company authorizes an individual or small group of entrepreneurs to use its name and products in exchange for a percentage of the sales revenue. The founding company lends its marketing expertise and reputation, while the entrepreneur who is granted the franchise manages individual outlets and assumes most of the financial liabilities and risks associated with the expansion.

While it is somewhat more expensive to get into the franchise business than to start an enterprise from scratch, franchises are less costly to operate and less likely to fail. That is partly because franchises can take.

Monopoly, no.

Successful small businesses sometimes grow through a practice known as franchising. In a typical franchising arrangement, a successful company authorizes an individual or small group of entrepreneurs to use its name and products in exchange for a percentage of the sales revenue. The founding company lends its marketing expertise and reputation, while the entrepreneur who is granted the franchise manages individual outlets and assumes most of the financial liabilities and risks associated with the expansion.

While it is somewhat more expensive to get into the franchise business than to start an enterprise from scratch, franchises are less costly to operate and less likely to fail. That is partly because franchises can take

10. Shipping and Forwarding: While delivering goods what form of transport do the companies use most frequently? What criteria should businesses keep in mind when choosing a form of transport? What are advantages and disadvantages of different forms of transport? What are the main types of terms of delivery in international trade? Characterize the documents used in shipping and forwarding.

While delivering goods what form of transport do the companies use most frequently?

• The three main methods of transporting goods are road, rail, air, and sea.

What criteria should businesses keep in mind when choosing a form of transportation?

Various factors will influence your decision on which type of transport to use - including your business’ requirements, the destination country, and the type of goods you are importing or exporting.

• Size and weight will affect the cost.

• How quickly does the product need to reach its destination? This will affect which type of delivery service you use and the cost - sending goods by air is quicker but significantly more expensive than by sea.

• How would transport costs impact on your overheads?

• Where do the goods need to go? For example, Europe has a large rail and inland waterway network, but you may encounter problems if the destination is especially remote.

• How valuable are the goods? Get quotes from insurance brokers before deciding on the appropriate insurance level.

• Do your customers have any special requirements?

Consider all the methods of transport available. You should aim to balance service quality, cost, organization and time. You will often use more than one mode of transport.

• Match the transport mode with the goods you’re moving. For example, if you import fresh fruit or other perishable items, speed is important. Transport by ship or road may not be quick enough.

• Another issue is whether or not your goods need to be kept refrigerated during transport.

What are advantages and disadvantages of different forms of transport?