   The franchisor giving certain rights to the franchisee within a certain period of time A business method that involves the licensing of trademarks and methods of doing business Usually chain stores

Applicants have a meeting with franchisor Contract Franchisor provides training to franchisee Select the venue of the store and hire staffs

  Franchisor: › › Plan location and decoration of the franchisee’s shop Provide training › Give continuous guidance and assistance to franchisee Franchisee: › Pay entrance fees › Pay certain percentage of sales revenue as franchisee fees

       7-Eleven Starbucks KFC Burger King Pizza Hut GONG CHA Happy Lemon

     Entrance Fee : 450,000 – 550,000 › Include a returnable stock deposit of 200,000 Operating period given: 5 years Venue: Franchisee can select from the existing 7-11stores, except the newly opened stores Rent: pay by franchisor Franchisee need to attend a 60-days training course (for free)

   Entrance Fee : › › › › › Returnable stock deposit : $30,000 Purchase of Equipment : $120,000 ~ $130,000 Decoration Fee : $150,000 ~ $200,000 FEHD License Fee : $20,000 Stock Purchase : $120,000 ~ 150,000 Operating period given: 3 years › From the 4 th year, contract need to be renewed per 2 years for $40,000 Consultant › › Consultancy fee : $2,000 each time Commissioner need to come at least 1 time/month during the first six months

 Franchise to one company ONLY › › › › › Starbucks  Maxim’s KFC (HK)  Birdland (Hong Kong) Limited Burger King  SSPHK (Airport and The Peak) Pizza Hut   NAS Holdings (Others) Jardines Group  This kind of franchisees can franchise to others

      Expand regionally, nationally and internationally No need to take care of daily operations of the branches Can concentrate on the development of the whole business Franchisee can find out new areas of business Earn the entrance fees and regular franchisee fees Block the chance of loss

     No need to spend long period of time to build the company’s reputation Burden is less than independently setting up a new business Obtains support from the head office Can learn the way to run a business Ensure there is not other competing franchise business around

  Franchisee can become a competitor Franchisee may hurt the reputation of the head office

    Have to follow the requirements of the franchisor Lack of self determination or scope of creativity The franchisee cannot take all the profits Have to pay a certain percentage of sales revenue as franchise fees

     Textbook Wikipedia (English / Simple English) › en.wikipedia.org / simple.wikipedia.org

7-11 › http://www.7-eleven.com.hk

GONG CHA › http://www.gong-cha.com

Online Forum › http://forum.online.hk/viewthread.php?tid=966&extra=pa ge%3D1&ordertype=1