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Thursday, January 9, 14

NETWORK & MARKETING PYRAMIDING

Thursday, January 9, 14

Thursday, January 9, 14

Direct Selling - salespeople interact with customers


face-to-face in a convenient location, either at the customers home or at work.

Thursday, January 9, 14

Direct Selling - salespeople interact with customers


face-to-face in a convenient location, either at the customers home or at work.

Network Marketing or MLM - form or direct selling


where people earn not only from their sales, but also from the sales of the people they recruit to join the selling network.

Thursday, January 9, 14

Direct Selling - salespeople interact with customers


face-to-face in a convenient location, either at the customers home or at work.

Network Marketing or MLM - form or direct selling


where people earn not only from their sales, but also from the sales of the people they recruit to join the selling network. Pyramiding- people are convinced to pay money for a chance to profit from the payments of others who might join later.

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Thursday, January 9, 14

8 POINT TEST

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Is there a product? Are commissions paid on sale of products and not on registration/entry fees?
Text

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Is the intent to sell a product not a position? Is there no direct correlation between the number of recruits and compensation?
Text

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If recruitment were to be stopped today, will the participants still make money?
Text

Is there a reasonable product return policy?

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Do the products have fair market value?


Text

Is there a compelling reason to buy?

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Make sure that they are registered

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There must be a product and reasonable joining fees

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Thursday, January 9, 14

FRANCHISING

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Thursday, January 9, 14

Marketing system revolving around a 2 party legal agreement whereby one party is granted the privilege to conduct business as an individual owner but is required to operate according to methods and terms specied by the other party.

Thursday, January 9, 14

Marketing system revolving around a 2 party legal agreement whereby one party is granted the privilege to conduct business as an individual owner but is required to operate according to methods and terms specied by the other party.

Thursday, January 9, 14

Marketing system revolving around a 2 party legal agreement whereby one party is granted the privilege to conduct business as an individual owner but is required to operate according to methods and terms specied by the other party. Opportunity for an individual to enter into business with less risk and without experience and knowledge of the business

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Thursday, January 9, 14

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services.

Thursday, January 9, 14

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services.

Thursday, January 9, 14

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services. 2 ACTORS OF FRANCHISING

Thursday, January 9, 14

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services. 2 ACTORS OF FRANCHISING

Thursday, January 9, 14

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services. 2 ACTORS OF FRANCHISING Franchisee - A purchaser of a franchise

Thursday, January 9, 14

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services. 2 ACTORS OF FRANCHISING Franchisee - A purchaser of a franchise Franchisor - The seller of the franchise

Thursday, January 9, 14

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services. 2 ACTORS OF FRANCHISING Franchisee - A purchaser of a franchise Franchisor - The seller of the franchise

Thursday, January 9, 14

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services. 2 ACTORS OF FRANCHISING Franchisee - A purchaser of a franchise Franchisor - The seller of the franchise Franchise contract
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Thursday, January 9, 14

FRANCHISEE OBLIGATIONS

Thursday, January 9, 14

FRANCHISEE OBLIGATIONS

Thursday, January 9, 14

FRANCHISEE OBLIGATIONS

Make a nancial investment in the operation.

Thursday, January 9, 14

FRANCHISEE OBLIGATIONS

Make a nancial investment in the operation. Obtain and maintain a standardized inventory and/or equipment package usually purchased from the franchisor.

Thursday, January 9, 14

FRANCHISEE OBLIGATIONS

Make a nancial investment in the operation. Obtain and maintain a standardized inventory and/or equipment package usually purchased from the franchisor. Maintain a specied quality of performance.

Thursday, January 9, 14

FRANCHISEE OBLIGATIONS

Make a nancial investment in the operation. Obtain and maintain a standardized inventory and/or equipment package usually purchased from the franchisor. Maintain a specied quality of performance. Follow a franchise fee as well as a percentage of the gross revenues.

Thursday, January 9, 14

FRANCHISEE OBLIGATIONS

Make a nancial investment in the operation. Obtain and maintain a standardized inventory and/or equipment package usually purchased from the franchisor. Maintain a specied quality of performance. Follow a franchise fee as well as a percentage of the gross revenues. Engage in a continuing business relationship

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Thursday, January 9, 14

FRANCHISOR PROVIDES:

Thursday, January 9, 14

FRANCHISOR PROVIDES:

Thursday, January 9, 14

FRANCHISOR PROVIDES: The company name that provides drawing power.

Thursday, January 9, 14

FRANCHISOR PROVIDES: The company name that provides drawing power. Identifying symbols, logos, designs, and facilities.

Thursday, January 9, 14

FRANCHISOR PROVIDES: The company name that provides drawing power. Identifying symbols, logos, designs, and facilities. Professional management training for each independent units staff.

Thursday, January 9, 14

FRANCHISOR PROVIDES: The company name that provides drawing power. Identifying symbols, logos, designs, and facilities. Professional management training for each independent units staff. Sale of merchandise necessary for the units operation, equipment to run the operation, and the food or materials needed for the nal product.

Thursday, January 9, 14

FRANCHISOR PROVIDES: The company name that provides drawing power. Identifying symbols, logos, designs, and facilities. Professional management training for each independent units staff. Sale of merchandise necessary for the units operation, equipment to run the operation, and the food or materials needed for the nal product. Financial assistance, if needed.

Thursday, January 9, 14

FRANCHISOR PROVIDES: The company name that provides drawing power. Identifying symbols, logos, designs, and facilities. Professional management training for each independent units staff. Sale of merchandise necessary for the units operation, equipment to run the operation, and the food or materials needed for the nal product. Financial assistance, if needed. Continuing aid and guidance to ensure that everything is done in accordance with the contract.

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Thursday, January 9, 14

FRANCHISE CATEGORIES

Thursday, January 9, 14

FRANCHISE CATEGORIES

Thursday, January 9, 14

FRANCHISE CATEGORIES Product & Trade Name Franchising

Thursday, January 9, 14

FRANCHISE CATEGORIES Product & Trade Name Franchising


distribution agreement for physical goods in which the franchisee is identied with the manufacturer.

Thursday, January 9, 14

FRANCHISE CATEGORIES Product & Trade Name Franchising


distribution agreement for physical goods in which the franchisee is identied with the manufacturer. franchising scheme where the potential franchisee may desire to use a widely recognized product or name.

Thursday, January 9, 14

FRANCHISE CATEGORIES Product & Trade Name Franchising


distribution agreement for physical goods in which the franchisee is identied with the manufacturer. franchising scheme where the potential franchisee may desire to use a widely recognized product or name.

Thursday, January 9, 14

FRANCHISE CATEGORIES Product & Trade Name Franchising


distribution agreement for physical goods in which the franchisee is identied with the manufacturer. franchising scheme where the potential franchisee may desire to use a widely recognized product or name.

Thursday, January 9, 14

Thursday, January 9, 14

FRANCHISE CATEGORIES

Thursday, January 9, 14

FRANCHISE CATEGORIES

Thursday, January 9, 14

FRANCHISE CATEGORIES Business Format Franchising

Thursday, January 9, 14

FRANCHISE CATEGORIES Business Format Franchising


franchising agreement which does not only cover the product and the framework but also the training program, marketing strategies, ads and promotions, support, operating manuals and standards, quality control, supplies, information system

Thursday, January 9, 14

FRANCHISE CATEGORIES Business Format Franchising


franchising agreement which does not only cover the product and the framework but also the training program, marketing strategies, ads and promotions, support, operating manuals and standards, quality control, supplies, information system

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Thursday, January 9, 14

COST INVOLVED

Thursday, January 9, 14

COST INVOLVED

Thursday, January 9, 14

COST INVOLVED Initial Licensing Fee

Thursday, January 9, 14

COST INVOLVED Initial Licensing Fee


initial amount paid which covers the value of the business and others.

Thursday, January 9, 14

COST INVOLVED Initial Licensing Fee


initial amount paid which covers the value of the business and others. the more successful and well known, the more expensive

Thursday, January 9, 14

COST INVOLVED Initial Licensing Fee


initial amount paid which covers the value of the business and others. the more successful and well known, the more expensive

Continuing Franchise Fee

Thursday, January 9, 14

COST INVOLVED Initial Licensing Fee


initial amount paid which covers the value of the business and others. the more successful and well known, the more expensive monthly royalty usually a percentage of the gross sales or at fee per period.

Continuing Franchise Fee

Thursday, January 9, 14

COST INVOLVED Initial Licensing Fee


initial amount paid which covers the value of the business and others. the more successful and well known, the more expensive monthly royalty usually a percentage of the gross sales or at fee per period. may also collect cooperative advertising royalty.

Continuing Franchise Fee

Thursday, January 9, 14

Pros and Cons to Franchisee

Thursday, January 9, 14

Pros and Cons to Franchisee


Training and guidance Brand-name appeal A proven track record Financial assistance

Thursday, January 9, 14

Pros and Cons to Franchisee


Training and guidance Brand-name appeal A proven track record Financial assistance Franchise fees Franchisor control Unfullled promises Dependent to other franchise

Thursday, January 9, 14

TO THE FRANCHISOR . . .

Thursday, January 9, 14

TO THE FRANCHISOR . . . Expansion Cost Advantages

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! How Much: The Investment Package for a franchised Figaro branch starts at P3.5 million, depending on the business model! ! Term of Franchise: 5 years!

! What do they provide: !


! ! ! ! ! ! !
!

Initial site assessment. ! Training in the Figaro System for the franchisee and initial branch staff. ! Site design and construction assistance. ! Comprehensive Store Operations Manual. ! An Opening Team assigned for the branch's rst month of operation. ! Regular eld visits by the Figaro Operations Team to give on-site assistance. ! Continuous training programs. !!

Thursday, January 9, 14

! How Much: Franchise Fee P 800,000 (bakeshop), P1.2 for (full store). Total Investment P6-8 M (bakeshop), P10-12M ( full store) ! ! Term of Franchise: 8 years !

Thursday, January 9, 14

! ! How Much: Franchise Fee P 3 Million, Total Investment P 10-20 M! ! Term of Franchise: 6 years! !

Thursday, January 9, 14

! ! How Much: Total Investment P 25 M! ! What does it include: Store Construction, kitchen equipment, furniture and xtures, air-conditioning system, signage, pre-operating expense.! !

!
Thursday, January 9, 14

! ! How Much: Franchise Fee P300,000 (MM) to P 400,000 (Province), minimum investment P 1.7 M! ! Term of Franchise: 5 years!

Thursday, January 9, 14

! ! How Much: Franchise Fee P 130,000. Total Investment: P350,000 to P550,000.! ! Term of Franchise: 4 years!

!
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! ! How Much: Franchise Fee P 250,000. Total Investment P 500,000.!

Thursday, January 9, 14

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