FRANCHISE

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Understanding Franchise

Is a strong partnership in which entrepreneurs (have the famous trademark) and have trade secrets and wants to expand her business.

It is one form of business format where the first party called the franchisor grants the franchisee the second party called to distribute the goods / services within the scope of geographical area and period of time to use other brands, logos, and the operating system owned and developed by the franchisor. Granting this right is manifested in a franchise agreement (franchise agreement).

Understanding the franchise (dictionary of business terms):
1. A permit granted by a prusahaan (franshisor) to one or to a company (franchisee) to operate a retail, food or a supermarket where the franchisee agrees to use the franchisor's form of the name, products, services, promotions, sales, distribution, methods for display etc. The company support.
2. The right to market their goods or services (co's goods and services) within a particular region, the right has been granted by the company to an individual, group of individuals, marketing group, retailer or wholesaler.
3. Franchise is a partnership between the entrepreneur whose business strong and successful with a relatively new entrepreneur or weak in the enterprise with the goal of mutual benefit, particularly in the business of providing products and services directly to consumers.

Element - the element Franchise (franchise)
1.
• The existence of at least 2 parties, namely the franchisor and the franchisee. Franshisor Party as the party that gives the franchise while the party is a party franshisee given / received such franchise;
• The bid package from the franchisor's business,
• There is cooperation between the management unit of the franchisor's business with the franchisee,
• Dipunyaianya certain business units (outlets) by the franchisee that will utilize his business package the franchisor,
• Often there is a written contract between the franchisor and the franchisee.

Franchise Legal Basis
• Agreement as the legal basis Civil Code Article 1338 (1), 1233 s / d 1456 Civil Code, the parties are free to do anything as long as not contrary to applicable laws, customs, manners or other matters relating to public order, also about validity of contract terms, etc..
• The law of agency as a legal basis; KUH Trade (Brokers & Commissioner), the provisions of an administrative nature such as the various provisions of the Ministry of Industry, Trade and so on. Often set firmly in the franchise contract between the franchisor that the franchisee does not have an agency relationship.
• Trademark Law, Patent and Copyright as a legal basis; connect participate involvement trademarks and logos belong to the franchisor in a franchise business, let alone the possible existence of a new invention by the franchisor, in which the invention can be patented. Law No.19 (1992) Marks, Law No. 6 (1982) Patents, Act No.7 (1987) Copyright.
• Foreign Capital Investment Law as a legal basis; If the franchisor will open outlets in a State not party country is the franchisor should be consulted before the foreign investment law expert on various kemungkinana and alternatives that may be taken and the most favor. Franchise instead chosen to circumvent certain restrictions for a foreign company when they wanted to operate through direct investment.
• Regulations etc. as the legal basis;
a. Administrative law provisions, such as on business licensing, the establishment of limited liability companies, etc. The general administrative regulations issued by the Department of Commerce. Trade Ministerial Decree No. 376/Kp/XI/1983 about trading activity.
b. Terms of Employment
c. Company Law (Corporate Law No. 1 (1995)),
d. The law is there a double tax-tax, income tax, value added tax, withholding tax on royalties and income tax on foreign labor.
e. Competition law,
f. Legal industry specific areas such as rules on standards of quality, hygiene and other rules aimed at protecting other consumers, or even their own food laws.
g. Laws regarding ownership rights to buildings, property, etc.
h. The law on currency exchange of Representatives adopted the free foreign exchange regime, there is no prohibition or restriction on entry and exit of foreign exchange from / to Indonesia.
i. The law on spatial planning; whether the region allows dibukannya a franchise, the quality of materials for the building is eligible? Etc etc.
j. The law on supervision of export / import for example in terms of decision making whether certain goods should be brought from the State party taken any franchisor or enough of a Contracting State franchisee.
k. The law on customs-whether it is more profitable certain goods supplied from abroad or local product menghandalkan enough alone.

II. The term - a term contained in Leasing and Franchise
LEASING

Leasing Mechanism

in leasing transactions involving at least four interested parties, among others:

a. Lessor
Lessor is leasing companies or parties that provide financing services to the lessees in the form of capital goods.
In finanse lease, the lessor aims to recover costs already dikelurkan to finance the provision of capital goods to earn a profit. In the operating lease, the lessor aims to benefit from the provision of goods and provision of services relating to maintenance and operation of such capital goods.

a. Lessee.
Lesse is a company or party who obtained financing in the form of capital goods from the lessor. In a finance lease, the lessee intended to obtain financing in the form of goods or equipment by way of periodic payments or installments. At the end of the contract, the lessee has the option of goods, which means that the lessee has the right to purchase goods on-lease at a price based on residual value. In the operating lease, the lessee intended to meet the needs of equipment in addition to operators and maintenance personnel the tools without risk to the lessee for damage.

a. Supplier.
Supplier is a company or person who holds or provides goods for sale to the lessee by cash payment by the lessor. In a finance lease, the suppliers deliver the goods directly to the lessee without the lessor as the party providing the financing. In the operating lease, the supplier sells goods directly to the lessor by payment in accordance with the agreement of both parties either by cash or credit will be repaid by installments.

a. Banks or lenders.
In a leasing contract, the bank or creditors not directly involved in the contract but the Bank plays a role in providing funds to the lessor. In this case, did not rule out the possibility of suppliers to receive credit from the Bank.

Franchise Fee is the cost of buying the right franchise franchise issued by the buyer (franchisee) after being declared eligible as a franchisee according to the criteria of the franchisor. Generally, the franchise fee is paid only once. Franchisee fee will be refunded by the franchisor to the franchisee in the form of initial training facilities, and support for set up beginning from the first outlet will be opened by franchisees.

Franchise Offering Circular (FOC)
FOC is a disclosure document provided by the franchisor to the franchisee candidates who have qualified, before he decided to signing the franchise agreement. FOC contains facts and non-financial fiansial associated with the franchisor and the franchisee that is remains to this and that has stopped. In the United States, to protect investors (prospective franchisee), FOC must be learned by the prospective franchisee at least 10 days. In this time not didijinkan franchisor and prospective franchisee to affect not allowed to sign the franchise agreement. For the conditions in Indonesia, a new FOC is an obligation that must be granted by the franchisor, with no clear time limit as in the United States.

Copyright (Copyright)
Copyrights are exclusive rights sesesorang to use and to license to others to use intellectual property such as work systems, books, songs, logos, trademarks, publicity materials and so forth.

Housemark
Housemark trademarks used as identification to distinguish the company and another company. Housemark may include company name, product name or group of products or even a composite name with a trademark (trademark / servicemark) others.

Identify Items
Identify items are items such as packaging, uniforms, POS materials, signage, materials and so on which must be used by the franchisee. The items are listed as a trademark owned by the franchisor.

Individual Franchisee
Individual Franchisee is a franchisee who act on behalf of itself which holds the franchise rights to one outlet only, and not to sell franchise rights owned.

Initial Investment
Initial capital investment is beginning to be deposited and held by the franchisee at the time of starting a business franchise. Initial investment consists of the franchise fee, the investment for fixed assets and working capital to cover operations during the early months of its franchise business.

Franchise Qualification questionnaire (Franchisee's Qualification Questionnaire)
Franchise Qualification questionnaire is a document prepared by the franchisor to be completed by the candidate franchisee. This document contains information for meentukan whether the candidate is able and motivated to start a business like those of the franchisor. The contents of this document for example, about whom, and why the candidates are interested in buying the franchise rights from the franchisor. Then how much financial ability of the candidate and so forth.

Operations Manual (Operating Manual)
Operations Manual prepared by the franchisor as an operational guide for the franchisee. Manual operation is a comprehensive and detailed guide on how the ways to do the operational functions of running a business the franchisor. In this manual to set forth chapter relating to the operational, personnel, marketing, finance, public relations, customer service, maintenance and so forth. Any deviations from the manual operation can cause loss of franchise franchisee.

Master Franchisee
Master Franchisee is a franchisee who received the franchise rights directly from the Franchisor covering specific geographic areas that generally include one jurisdiction (state). Master Franchisee may sell franchise rights to the Area, Multiple and Individual Franchisee.

Mystery Shoppers
Mystery Shopper is a tool used by the franchisor or franchisee to assess how well the implementation of operational standards in one outlet in terms of subscribers.
.
Offer (Offer)
Offering an oral or written communication from the franchisor to prospective franchisees. Written communication can be a prospectus and so forth.

Franchise Agreement (Franchise Agreement)
The franchise agreement is a collection of the terms, provisions and commitments made and desired by the franchisor to the franchisee him. In the franchise agreement contained provisions relating to the rights and obligations of franchisee and franchisor, such as territorial rights owned by the franchisee, location requirements, training requirements, costs to be paid by the franchisee to the franchisor, the provisions relating to the old franchise agreement and its extension and other ketetentuan regulate the relationship between the franchisee with the franchisor.
example for franchice is dunkin’s donut

Dunkin' Donuts

If you would like more information about this franchise, then fill out the "More Information" form to the right and you will be contacted by a Franchise Representative.

• Investment Range: $100,000 - $500,000
• Financing Available: Yes
• Training & Support: Yes

Brand Power.
Founded in 1950, today Dunkin' Donuts® is the number one retailer of hot regular coffee-by-the-cup in America, selling 2.7 million cups a day, nearly one billion cups a year. Dunkin' Donuts is also the largest coffee and baked goods chain in the world and sells more hot regular coffee, iced coffee, donuts, and bagels than any other quick service restaurant in America. Dunkin' Donuts have more then 8,835 Dunkin' Donuts stores worldwide, including 6,395 franchised restaurants in 34 United States and 2,440 international shops in 31 countries.
Franchise Investment Opportunities
Dunkin' Donuts Franchise investment opportunities are available for both individuals and corporate investors interested in purchasing Dunkin' Donuts development agreements. Becoming an owner and operator of Dunkin' Donuts franchises allows you to join the established Dunkin' Donuts brand.
Dunkin' Donuts Is Now Expanding!
Start Think' Dunkin'- Dunkin' Donuts is the countries #1 retailer of hot and ice coffee, selling more then one billion cups of coffee a year. Dunkin' Donuts is expanding in various markets though-out the U.S. There has never been a better time than now to explore a Dunkin Donuts franchise opportunity. Dunkin' Donuts has launched an aggressive national growth strategy which includes expanding in existing markets while entering new cities throughout the country. Together we can do coffee.
Candidate Profile
Dunkin' Donuts candidates must meet the following qualifications to be considered for a franchise opportunity:
• A passion for and dedication to operations excellence;
• Clear understanding of the real estate development process particularly as it relates to the markets that they are developing;
• The ability to create and manage an organization that effectively recruits, trains, retains, and motivates people;
• Adequate capitalization to meet an aggressive development schedule;
• A strong desire to build incremental income through constructing and operating Dunkin' Donuts restaurants;
• The ability to deliver a superlative customer experience while maintaining a dedication to Dunkin' Donuts' core values of Honesty, Transparency, Humility, Integrity, Respect, Fairness, and Responsibility, and ideally;
• An understanding of the local "culture" and strong ties to the community
Come see what we are brewing in your area.

Sources:
Lovetya’s blog
http://lovetya.wordpress.com/

www.franchiseclique.com/franchise/Dunkin'-Donuts