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CH-4: TOPIC – ENTERPRISE GROWTH STRATEGIES

                                                    CODE : 241604010112




               NOTES:

               1.PRODUCT  FRANCHISE  :     Arrangement  in  which  a  supplier  (franchiser)  supplies  a  product
               family  to  a  dealer  (franchisee)  who  may  also  take  on  the  identity  (brand  name)  of  the
               franchiser. Exclusive brand-name stores are usually product-franchisees. Also called trade name
               franchise. POPULAR TERMS.


               2.    MANUFACTURING        FRANCHISE      :   This   model    of franchise involves   granting
               of manufacturing and selling rights to the franchisees by the franchisor. Franchisees, however,
               are  required  to  sell  the  goods  under  the  trademark  and  name  of  the  franchisor's
               brand.EXAMPLE FOOD AND BEVERAGES INDUSTRY

               3.  BUSINESS  FRANCHISE  OPPORTUNITY  VENTURE  :  The franchisee distributes  products  or

               services  on  behalf  of  the  franchisor  to  customers  developed  by  franchisor  in  return  for  a
               percentage of sales on commission. ... The franchisor maintains a significant amount of control
               over the distribution and sale of the products. EXAMPLE VENDING MACHINES

               4. BUSINESS FORMAT FRANCHISE : A business format franchise is a franchising arrangement
               where the franchisor provides the franchisee with an established business, including name and
               trademark, for the franchisee to run independently. Fast food restaurants such as McDonald's
               and Burger King are examples of such franchises. Most popular form of franchising.


                 5. FRANCHISE HELPS START-UPS ( NEW BUSINESS ) :
                 a) ready market
                 b) impart training to the start-ups,
                  c) possibility of growth is very fast ,
                 d) mutual cooperation and collective gains lead to the success of the new business.
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