The franchisor owns the brand name, products, and corporate identity, and these are licensed to independent franchisees who carry the risk of local operations. Revenue is generated as part of the franchisees’ revenue and orders. The franchisees benefit from the usage of well known brands, know-how, and support.
How they do it: Panera Bread Bakery offers individual entrepreneurs to open a franchise location of their chain. Before opening, the entrepreneur has to sign a franchise agreement specifying his obligations, rights and the fees he has to pay to the company. These include e.g. franchise fee, supplies, and other fees.
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How they do it: In the United States, Shell has a network of strategically-located local service stations, offering convenience retailing as well as a variety of fuel products. Shell offers franchise opportunities for suitable candidates. Successful applicants are required to have at least 10 percent unencumbered cash of the total capital required for investment.
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How they do it: With Denner, entrepreneurs with experience in the grocery retail sector can open their own store with strong support from the corporation.
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How they do it: Levi’s allows independent entrepreneurs to open a Levi’s store for them. This is avaivable in strategic markets for Levi’s in which the penetration of the brand is not saturated yet. In addition entrepreneurs have to fulfill several other qualifications in order to be considered as a franchising partner (e.g. experience and capital). When running the store, Levi’s requires an initial franchise, advertising and royalty fees.
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How they do it: Subway is one of the fastest-growing franchises in the world and, as of June 2017, has approximately 45,000 stores located in more than 100 countries. More than half of the stores are located in the United States. Subway collects recurring royalty fees and an upfront franchise fee from independent store operators.
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Below, the top industries for the pattern "Franchising" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Below, the pattern "Franchising" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
