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    Franchising is a contractual agreement where a retailer (franchisee) sells a producer's (franchiser) goods or services for a fee. There are several types of franchising including product, manufacturing, business format, leasing, and licensing franchises. Franchising provides advantages like going into business with an established brand for support but independence, but disadvantages include less independence and paying ongoing fees. Support for franchising comes from government organizations and banks that help small businesses and entrepreneurs. The National Institute for Entrepreneurship and Small Business Development (NIESBUD) specifically assists entrepreneurs through training, conferences, and helping start regional institutes.

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    Franchising is a contractual agreement where a retailer (franchisee) sells a producer's (franchiser) goods or services for a fee. There are several types of franchising including product, manufacturing, business format, leasing, and licensing franchises. Franchising provides advantages like going into business with an established brand for support but independence, but disadvantages include less independence and paying ongoing fees. Support for franchising comes from government organizations and banks that help small businesses and entrepreneurs. The National Institute for Entrepreneurship and Small Business Development (NIESBUD) specifically assists entrepreneurs through training, conferences, and helping start regional institutes.

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    © All Rights Reserved
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    15 views5 pages

    Franchising

    Uploaded by

    ravipriya19
    Franchising is a contractual agreement where a retailer (franchisee) sells a producer's (franchiser) goods or services for a fee. There are several types of franchising including product, manufacturing, business format, leasing, and licensing franchises. Franchising provides advantages like going into business with an established brand for support but independence, but disadvantages include less independence and paying ongoing fees. Support for franchising comes from government organizations and banks that help small businesses and entrepreneurs. The National Institute for Entrepreneurship and Small Business Development (NIESBUD) specifically assists entrepreneurs through training, conferences, and helping start regional institutes.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Franchising

    Defined as a form of contractual arrangement in which a


    retailer (franchisee) enter into an agreement with a producer
    (franchiser) to sell the producer’s goods or services for a
    specified fee or commission.

    TYPES OF FRANCHISING
    1. Product Franchising
    2. Manufacturing Franchising
    3. Business Format franchising
    4. Leasing
    5. Licensing
    Advantages
    1.Go into business for yourself, but not by yourself
    2.Certain level of independence
    3.Already enjoy widespread brand-name recognition.
    4. Increases your chances of business success
    5.Level of quality and consistency

    Disadvantages
    1.The franchisee is not completely independent.
    2.Must pay ongoing royalties and advertising fees.
    3. Franchisees must be careful
    4.A damaged, system-wide image can result negatively
    5.The term (duration) of a franchise agreement is usually
    limited
    Support & Financial Institutions
    •National Small Industries Corporation Limited (NSIC)
    •Small Industries Development Organization (SIDO)
    •Small Industries Service Institutes (SISI)
    •National Bank for Agriculture and Rural Development (NABARD)
    •District Industries Centres (DICs)
    •Industrial Estates
    •Technical Consultancy organizations (TCOs)
    •Commercial Banks
    •Small Industries Development Bank Of India (SIDBI)
    •The Industrial Credit and Investment Corporation of India(ICICI)
    •The National Institute for Entrepreneurship and Small Business
    Development(NIESBUD)
    Activities of NIESBUD
    ••Assisting/supporting EDPs
    ••Training for trainers/promoters
    ••Creation & capacity building of EDP Institutions.
    ••Small business focus
    ••Developing entrepreneurial culture.
    ••Services to affiliate members.
    ••Sustaining entrepreneurship
    Objectives
    Ø To help/support and affiliate institutions/organizations
    Ø Accelerating the process of entrepreneurship
    Ø To provide vital information and support to trainers
    Ø To provide forums for policy formulation
    Ø To offer consultancy nationally/internationally
    Functions
    •To accelerate the process of entrepreneurship
    •To organize and conduct training programmes.
    •To co-ordinate the training activities
    •To identify potential entrepreneurs
    •To hold examinations and test and confer certificates
    •To undertake documentations and tests
    •To conduct work-shops, seminars and conferences
    •To assist in setting up of a regional and state level training
    institutes

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