Franchising - a model for the export of know-how
The main principles of international franchising, Olivier gast
Symposium PARIS CECOD CCI-1985, "How to export its know-how”, you can read it online here.
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Zooming in on the work: “La Master franchise” [in French] = Master FranchisingC.E.D.R.E.
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The EURO Letter
The essential tool for franchise manager
Euro Letter online Issues to download SubscribeMaster Franchising
The master franchise is a technique that allows the export of French franchisors abroad.
The master franchisee is an independent contractor and principal entrepreneur, who enjoys an exclusivity in a given country and will be responsible for a period of roughly 20 years to develop the concept in his country. He can organize his development branch or sub-franchise. The master franchisee will pay a master fee (entrance fee) and royalties.
While the franchisor / franchisee relationship is binary, the report in the master franchise is between three parties:
1. Franchisor
2. The master franchisee
3. The local sub-franchisee
The complexity of the master franchise lies within the margin generated by the franchise and that it should allow and ensure profitability for:
1. The Franchisor
2. The Master franchisee
3. The sub-franchisee
Therefore it is unnecessary to remind you that the calculation of the levers is necessarily more sophisticated and complicated to implement than in the normal franchise.
The advantage of the master franchise is that a seasoned businessman with business and therefore the franchisor / master franchisee is a more balanced and calmer relationship since the respective business plan appears attractive for all (See Olivier Gast book "Master franchise" Gast Edition)
The master franchisee is an independent contractor and principal entrepreneur, who enjoys an exclusivity in a given country and will be responsible for a period of roughly 20 years to develop the concept in his country. He can organize his development branch or sub-franchise. The master franchisee will pay a master fee (entrance fee) and royalties.
While the franchisor / franchisee relationship is binary, the report in the master franchise is between three parties:
1. Franchisor
2. The master franchisee
3. The local sub-franchisee
The complexity of the master franchise lies within the margin generated by the franchise and that it should allow and ensure profitability for:
1. The Franchisor
2. The Master franchisee
3. The sub-franchisee
Therefore it is unnecessary to remind you that the calculation of the levers is necessarily more sophisticated and complicated to implement than in the normal franchise.
The advantage of the master franchise is that a seasoned businessman with business and therefore the franchisor / master franchisee is a more balanced and calmer relationship since the respective business plan appears attractive for all (See Olivier Gast book "Master franchise" Gast Edition)
Overview of one of the Olivier Gast’s great cocktails on its Catamaran ‘Winner Touch’ during the MAPIC.
This photo: Cannes MAPIC 2001
This photo: Cannes MAPIC 2001
- Franchise Magazine - Europe more favorable to the master-franchise, click here
- Franchise Magazine - March 2005 - The Laws of Franchising, click here
- Franchise Magazine - No. 167 - August 2002 - A worldwide law on franchising?
- 1988 - International Union of Lawyers, click here
- Paris-London axis, click here
- Export - March 1982 - Franchise Without Borders, click here
- MOCI - November 1985 - Franchise, stronger, further, click here
- CCI-CECOD Paris Symposium 1985: "How to export its know-how", click here
- Franchise Magazine - March 2005 - The Laws of Franchising, click here
- Franchise Magazine - No. 167 - August 2002 - A worldwide law on franchising?
- 1988 - International Union of Lawyers, click here
- Paris-London axis, click here
- Export - March 1982 - Franchise Without Borders, click here
- MOCI - November 1985 - Franchise, stronger, further, click here
- CCI-CECOD Paris Symposium 1985: "How to export its know-how", click here
Work on Master Franchise
Focus on a book: "The master franchise"
by Olivier Gast
Gast Editions - 2001
SUMMARY
Introduction
Chapter I: Master franchising and other techniques of internationalization of SMEs
1. Direct franchising
1.1 Direct franchising of a unit
1.2 Direct franchising with a development agreement
1. 3 Franchising by the establishment of a foreign subsidiary company or a branch in the country of establishment
2. Master Franchising
3. Joint Venture
Chapter II: The main clauses of a master franchise agreement
1. The exclusivity of rights granted to the main franchisee
2. The objectives of development of the network
3. The rights granted to the main franchisee
3.1 The right of approval of any new franchise created pursuant to the main franchise agreement
3. 2 Payment of royalties
3. 3 The supply control
3.4 The trademark license and the authorization to concede franchisee sub-licenses
3.5 Protection of the franchising system
3.6 Adaptation of the original franchise
Chapter III: The financial levers of master franchising
1. Elements of the simple franchise
1.1 Entrance fees
1.2 Royalties
1.3 Contribution to advertisement charges
1.4 Logistic margins or profits margins
2. Financial parameters of the master franchise
2.1 Franchisee
2.2 Master Franchisee
2.3 Franchisor
3. Cases study
Chapter IV: International master franchising: a global strategy or an adapted strategy?
1. Introduction
2. The different steps of the establishment of a master franchise
Conclusion
Bibliography
Introduction
Chapter I: Master franchising and other techniques of internationalization of SMEs
1. Direct franchising
1.1 Direct franchising of a unit
1.2 Direct franchising with a development agreement
1. 3 Franchising by the establishment of a foreign subsidiary company or a branch in the country of establishment
2. Master Franchising
3. Joint Venture
Chapter II: The main clauses of a master franchise agreement
1. The exclusivity of rights granted to the main franchisee
2. The objectives of development of the network
3. The rights granted to the main franchisee
3.1 The right of approval of any new franchise created pursuant to the main franchise agreement
3. 2 Payment of royalties
3. 3 The supply control
3.4 The trademark license and the authorization to concede franchisee sub-licenses
3.5 Protection of the franchising system
3.6 Adaptation of the original franchise
Chapter III: The financial levers of master franchising
1. Elements of the simple franchise
1.1 Entrance fees
1.2 Royalties
1.3 Contribution to advertisement charges
1.4 Logistic margins or profits margins
2. Financial parameters of the master franchise
2.1 Franchisee
2.2 Master Franchisee
2.3 Franchisor
3. Cases study
Chapter IV: International master franchising: a global strategy or an adapted strategy?
1. Introduction
2. The different steps of the establishment of a master franchise
Conclusion
Bibliography
