‘Rudolf A. Kotik’ Archives
“All about franchising”
by Rudolf A. Kotik Transfer of a franchise FRANCHISORS restrict transfers of their Franchisees in order to maintain control over the persons who operate them. Such restrictions should apply to the franchise agreement, ownership of Franchisee and the assets of the Franchisee’s business. Typically the Franchisor reserves the right to [...]
Franchise dispute resolution
A franchise relationship has high potential for disputes. A Franchisor has business relationships with sources, in some networks hundreds of Franchisees of a network entered into their relationships with the Franchisor at different times and with differing expectations and goals. The Franchisor must operate its business for the benefit of [...]
Maintain the value of a franchise
THE benefits and services furnished by a Franchisor must have continuing value to Franchisees relative to the cost of the franchise. Franchisor faces several obstacles in achieving a general perception among its Franchisees that the value of the services furnished by the Franchisor, are equal to the fees they pay. Fees payable to a [...]
FRANCHISORS SYSTEM DEVELOPMENT
A Franchisor generally has less control over franchised outlets than it would have over company-owned outlets. Maintenance of high and relatively uniform standards throughout a network is of significant value to those Franchisees that voluntarily maintain system standards and perceive system standard as a valuable element of their franchise. [...]
Transfer of a franchise
FRANCHISORS restrict transfers of their Franchisees in order to maintain control over the persons who operate them. Such restrictions should apply to the franchise agreement, ownership of Franchisee and the assets of the Franchisee’s business. Typically the Franchisor reserves the right to approve the transferee and the terms of transfer. [...]
The 4 P of Product Marketing
Four elements play a role in a customer’s decision to buy a product: the product itself, the price of the product, the place and the promotion of the product. Product: • What is the physical product? • What additional features are needed? • What are the functions or uses of the product? • What services need to be [...]
Franchise relationship, Part II
By Rudolf A. Kotik FRANCHISES are granted for a definite term, usually between 5 to 10 years for local franchises and up to 99 years for master franchises and therefore will expire at the end of such term. Franchise agreement should deal with this significant element of the franchise relationship, providing for the preconditions for the [...]
Retrospect to franchising
WHILE the year turned out to be a turbulent one, it was actually not a bad one for Franchising and the Philippine economy in general while the year had its share of scares with the high increase of petroleum and rice at the begin of the year then the financial turmoil which hit Wall Street and the international banking and finance community. [...]
Franchise relationship, Part I
By Rudolf A. Kotik Franchisors typically prohibit their franchises from having investments in or performing services for a competitive business. This prohibition is intended to protect confidential information, maintain the Franchisor’s revenue, prevent the use by competitors of the Franchisor’s know-how and focus the Franchisee’s [...]
