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money very quickly. If you want to franchise internationally, do it
because you believe your products or services will make a difference
there. Don't do it to fix your problems at home.
Assignments:
I. Find in the text English equivalents for:
охватывать, включать в себя различные виды; становиться
повальным увлечением, помешательством; иметь большое значе-
ние; теоретически, прокладывать путь к; отвечать за; помещение;
внести свой вклад в дело; расходы; промотать, истратить деньги;
решить свои проблемы.
II. Answer the questions:
1. How would you define Franchising?
2. Describe the way a franchise is operated.
3. What is the condition for successful cross-border franchising?
III. Comment on the following statements:
1. Getting Started
Opening a franchise is a major decision. These tips will help
you determine if it's the right move for you:
• Do thorough research.
• Talk to other franchisees, including past and present owners.
• Hire an attorney to review all documents.
• Consider how much cash you can afford to invest in a new
business.
• Reflect on the type of business you can feel passionate about.
2. To be a good franchisee, you must be a self-starter. Corporate
executives usually are systems-oriented and willing to follow the rules
of the franchise organization, which makes them "ideal candidates".
3. The franchise company has to be flexible and have a strong
reputation and well-developed operating systems.
4. Industry contacts are essential for potential franchise owners,
but they aren't enough to make a venture work.
5. If you want to franchise internationally, do it because you be-
lieve your products or services will make a difference there. Don't do
it to fix your problems at home.
6. Perhaps no force has influenced international franchising
more than the Internet.
38
TEXT 2
What is Franchising?
When you hear the word 'franchise' you probably think of fast
food restaurants like McDonald's, Burger King and Wendy's. But there
are many more types of franchise businesses.
One out of every three dollars spent by Americans for goods
and services is spent in a franchised business. Homes are bought and
sold through franchised real estate companies. These same homes can
be cleaned, painted and carpeted through a franchised business. Cars
can be purchased, tuned and washed through franchises. We can have
our hair cut, clothes cleaned, pets cared for all in franchised busi-
nesses. We can travel from one area of the world to another through
franchised businesses.
Franchising is a method of doing business. It is a method of
marketing a product and/or service, which has been adopted and used
in a wide variety of industries and businesses. The word "franchise"
literally means to be free. In this sense, franchising offers people the
freedom to own, manage and direct their own business. However, as
with any freedom, there are responsibilities. In franchising, these re-
sponsibilities have to do with the franchisee's commitments and obli-
gations – usually spelled out in a franchise agreement or contract – to
the franchiser. The franchiser is the one who owns the right to the
name or trademark of the business. The franchisee is the one who pur-
chases the right to use the trademark and system of business.
There are two different types of franchise arrangements: product
distribution arrangements in which the dealer is to some degree, but
not entirely identified with the manufacturer/supplier; and business
format franchises in which there is complete identification of the
dealer with the buyer.
Business format franchises offer the franchisee not only a
trademark and logo, but a complete system of doing business. Indeed
the word 'system' is the key concept to franchising. A franchisee re-
ceives assistance with site selection of the business, personnel training,
business setup, advertising and product supply. For these services the
franchisee pays an up-front fee and an on-going royalty, which enables
the franchisor to provide training, research and development and sup-
port for the entire business. In a nutshell, the franchisee purchases
someone else's expertise, experience and method of doing business.
money very quickly. If you want to franchise internationally, do it TEXT 2 because you believe your products or services will make a difference there. Don't do it to fix your problems at home. What is Franchising? When you hear the word 'franchise' you probably think of fast Assignments: food restaurants like McDonald's, Burger King and Wendy's. But there are many more types of franchise businesses. I. Find in the text English equivalents for: One out of every three dollars spent by Americans for goods охватывать, включать в себя различные виды; становиться and services is spent in a franchised business. Homes are bought and повальным увлечением, помешательством; иметь большое значе- sold through franchised real estate companies. These same homes can ние; теоретически, прокладывать путь к; отвечать за; помещение; be cleaned, painted and carpeted through a franchised business. Cars внести свой вклад в дело; расходы; промотать, истратить деньги; can be purchased, tuned and washed through franchises. We can have решить свои проблемы. our hair cut, clothes cleaned, pets cared for all in franchised busi- II. Answer the questions: nesses. We can travel from one area of the world to another through 1. How would you define Franchising? franchised businesses. 2. Describe the way a franchise is operated. Franchising is a method of doing business. It is a method of 3. What is the condition for successful cross-border franchising? marketing a product and/or service, which has been adopted and used III. Comment on the following statements: in a wide variety of industries and businesses. The word "franchise" 1. Getting Started literally means to be free. In this sense, franchising offers people the Opening a franchise is a major decision. These tips will help freedom to own, manage and direct their own business. However, as you determine if it's the right move for you: with any freedom, there are responsibilities. In franchising, these re- • Do thorough research. sponsibilities have to do with the franchisee's commitments and obli- • Talk to other franchisees, including past and present owners. gations – usually spelled out in a franchise agreement or contract – to the franchiser. The franchiser is the one who owns the right to the • Hire an attorney to review all documents. name or trademark of the business. The franchisee is the one who pur- • Consider how much cash you can afford to invest in a new chases the right to use the trademark and system of business. business. There are two different types of franchise arrangements: product • Reflect on the type of business you can feel passionate about. distribution arrangements in which the dealer is to some degree, but 2. To be a good franchisee, you must be a self-starter. Corporate not entirely identified with the manufacturer/supplier; and business executives usually are systems-oriented and willing to follow the rules format franchises in which there is complete identification of the of the franchise organization, which makes them "ideal candidates". dealer with the buyer. 3. The franchise company has to be flexible and have a strong Business format franchises offer the franchisee not only a reputation and well-developed operating systems. trademark and logo, but a complete system of doing business. Indeed 4. Industry contacts are essential for potential franchise owners, the word 'system' is the key concept to franchising. A franchisee re- but they aren't enough to make a venture work. ceives assistance with site selection of the business, personnel training, 5. If you want to franchise internationally, do it because you be- business setup, advertising and product supply. For these services the lieve your products or services will make a difference there. Don't do franchisee pays an up-front fee and an on-going royalty, which enables it to fix your problems at home. the franchisor to provide training, research and development and sup- 6. Perhaps no force has influenced international franchising port for the entire business. In a nutshell, the franchisee purchases more than the Internet. someone else's expertise, experience and method of doing business. 37 38
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