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Franchising explained simply

Basic things you need to know about franchising

By: Carlo P. Mallo | Sep 08, 2011 19:00 pm

Franchising seems to be what everyone in the Philippines is talking about today. To help you prepare for the upcoming Franchise Asia 2011, where hundreds of franchise opportunities will await you, Entrepreneur.com.ph dissected the roles of the two principal actors involved in a franchising scheme – the franchisee and the franchisor.

If you are the franchisee, then these are the things that you will do:

  • Pay an initial fee
  • Furnish all the capital
  • Assume full financial & good operational responsibility for running the business
  • Pay a continuing royalty
  • Buy products from and support the franchisor


If you are the franchisor, then these are the things that you have to observe:

  • Allow franchisee to use trademark
  • Train franchisee to run Business
  • Assist franchisee during start-up
  • Provide ongoing services
  • Build relationship with the franchisee


Source: Philippine Franchise Association

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