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Forms of Restaurant Ownership

Forms of Restaurant Ownership . Chain Independent Franchise. Transparency 5-1. Chain Strengths . Marketing and brand recognition Site selection expertise Access to capital Purchasing economies Centrally administered control and information systems

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Forms of Restaurant Ownership

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  1. Forms of Restaurant Ownership • Chain • Independent • Franchise Transparency 5-1

  2. Chain Strengths • Marketing and brand recognition • Site selection expertise • Access to capital • Purchasing economies • Centrally administered control and information systems • Financial support and expertise for new product development • Human resource program development Transparency 5-2

  3. Product/trade name franchising: Confers the right to use a brand name and to sell a particular product Business format franchising: Includes the use of product, service, and all other systems and standards associated with the business Two Kinds of Franchising Transparency 5-3

  4. Most Common Characteristics of a Franchise Agreement • Use of trademarks • Location of the franchise • Term of the franchise • Franchisee’s fees and other payments • Obligations and duties of the franchisor • Obligations and duties of the franchisee • Restrictions on goods and services offered • Renewal, termination, and transfer of franchise agreement Transparency 5-4

  5. Services Provided to Franchisees Initial Services • Overall concept • Franchisee screening • Site selection and planning • Pre-opening training • Operations manuals Transparency 5-5

  6. Operating and control procedures Information management Quality control Training Field support Purchasing Marketing Advertising New products New concepts Services Provided to Franchisees Continuing Services Transparency 5-6

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