As a franchisor, basically, we will be taking what works and what has worked in your business and formalizing these systems and procedures so that you may be taught to and implemented by your future franchisees. Your “franchise agreement” will serve as the primary contract by which you grant third party franchisees the license and right to establish and operate your franchised business. Your role as a franchisor will include:
Franchised Expansion: The expansion of your business, business systems, trademarks and trade dress through “franchised expansion” that will occur through third party franchisees.
Formalizing Your Systems: To achieve your “franchised expansion” you will be formalizing and documenting what works in your business and the steps that franchisees will be required to follow. These formalized systems will be identified in the following legal documents i.e Franchise Agreement, which will be Prepared by our Legal team .
THE RESPONSIBILITIES OF A FRANCHISOR:
As a “franchisor” our primary responsibility will be to support the operations of your franchisees and to continuously develop and monitor the business systems, products and/or services that have made your business a success.
As such, Franchisor responsibilities will include:
Marketing: As a franchisor one of our primary responsibilities will relate to establishing a marketing foundation focused on promoting our brand, legally protecting our trademarks and establishing quality standards for our products and/or services.
Managing the Products and Services of the Brand: As franchisor, to promote our brand and goodwill, we will be required to establish and maintain performance standards respecting the quality of the goods and/or services provided by our franchisees.
Managing the Market Area and Territory of Franchised Locations: As franchisor, we will strategically identify territories that will be targeted for franchise expansion. Initially expansion must be focused on geographic territories that can be properly managed and supported.
These are just some of the ongoing responsibilities that a franchisor may have.
As per Scheme Guidelines of RBI and IRA-SIDBI, Government of India.