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FC business

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Guide 1 of FC business introduction

What are franchise, franchise chain, franchise business?

Shops which were open in chain form by same mark and image, assortment of goods increased in each places of the whole country recently.
Franchise chain is one form of such a chain, too.
Type of industry of franchise chain diverges into many branches. For example, also, in late years, retail businesses such as convenience store, car article and confectionery, bakery shop, service industries such as clean service, cram school or building a house such as DPE shop or cleaning increase eating out business such as hamburger shop, beef bowl restaurant, restaurant more, too.
We call these "franchise chain", but the total of the number of the stores counts about 230,000, and sales amount is 20 trillion yen and forms the field of one industry called "franchise business".

Then we will guide from meaning of the word "franchise".

As for the word franchise, word English [franchise] is just used as Japanese.
The meaning is used in stronghold of professional baseball and soccer team and meaning such as performance rights in de, Japan "giving special privilege [sole distributorship]." <in person, company>.
In addition, franchise business is developed in the United States and spread in Japan, and English is used many for term of franchise business.

Well, person giving special privilege is called [franchisor] (franchiser) for franchise business and points to company running franchise business in Japan and is called the headquarters, the headquarters company.
Furthermore, person given special privilege is called [franchisee] (franchisee) and is called member shop, member (Corp.).

Then what are contents of special privilege (special right)?
It is product and structure which we developed because franchiser runs franchise business.
Generally, we are comprised of the next contents.

  1. Trademark, service mark of franchiser, right using chain name
  2. Product which franchiser developed and right using service, management know-how including information
  3. Right to receive instruction and support that franchiser provides continuously in franchisee

It is usually called furanchaizubakkeji [franchise package] as these special privileges are offered to franchisee as bundle of pack.

Structure of franchise package

In addition, franchiser and franchisee are donated under the constant rule, and franchise package uses.
The rule is "franchise contract", and franchiser offers franchise package to franchisee according to the contents, and franchisee pays value constant in return using package to franchiser.
Royalty [royalty] means this.
Royalty is English, and original meaning is royalty, the fee for use, patent royalty.

(one) Definition of "franchise" of Japan Franchise Association

Company (we call "franchiser") makes a contract with franchise between other companies (we call "franchisee") and gives rights to perform sale or other business of product with the same image using trademark, service mark of self, symbol of business of trade name and others and know-how of mark that it is and management and, on the other hand, franchisee pays the value constant in return and says continuous relations of both who drop fund which is necessary for business, and perform business with instruction of franchiser and support.

Structure of franchise chain

Franchisee puts own fund whereas franchise business provides method to run business such as trademark symbolizing franchise system and know-how and it which franchiser developed or service mark, chain name if say, and is open using method, know-how of business that the headquarters developed, and is going to profit each other, it may be, so to speak, said with "community of business".

However, management method to be seen like ordinary chain store (shop) which the headquarters company which is franchiser of franchise chain and company of capital which is the same from consumers because it is independent company where member shop which is franchisee is just different, and they perform business under the constant rule called franchise contract run is franchise chain.

[2] Comparison with other chain systems

There is chain system to be open by same mark and image, assortment of goods as well as franchise chain, and there is the following thing.

  1. Ordinary chain store (chain consisting of shop)
    Generally, it is called chain store. One headquarters company builds store and is management method to employ employee, and to be open. The headquarters appoints person in charge of store. Major department store, supermarket are these representatives.
  2. Voluntary chain store [voluntarily chain]
    Retail store in each place is cooperation organization that they formed for the purpose of the joint stocking of product mainly. Each retail store joins voluntary chain store, and business and price negotiation with impossible maker are enabled at individual retail stores by being gathered up, and stocking a large quantity of products. Originality of each retail store is respected (each including signboard is open in original name, business name), and organization is run with decision making of retail store. Type of industry extends over community-based food supermarket (minimarket), optical shop, stationer, many divergences including bedclothing shop by retail business mainly. In addition, there is voluntary chain store which wholesaler presides over other than retail store.
  3. Agency
    We say form that company sells product which the headquarters supplies by contract with the headquarters to monopolistically. Specifically, we establish uniformity area as territory and are given rights to sell monopolistically in the range. There is thing which is open for same mark, image, but there are few instructions about store administration and sale from the headquarters, and there are many cases that there is little continuous instruction, and type of industry varies, too.

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