About Franchise

Frachising (Purchase right of License)
In the present development of franchise businesses (Franchisor) is very fast and Rapid. It can be seen from the number of trademark companies that flourished in Indonesia. Both large companies and the ketch, local or foreign-made racing franchise their products. In Indonesia alone there since the 70s franchisesudah when the entry of Shakey Pisa, KFC, Burger King and Swensen. Business Franchise (Franchise) is one strategy in developing a business with broad market coverage. 
DEFINITIONFranchisng is basically the right to purchase a license. The advantage of this business because of the cooperation or sustainable business relationship between the buyer the right license (franchise) with a party that purchased the license (the franchisor). Franchising is a legal union between a license (manufacturing) or a holding company, the dealer (dealer) to carry out the activities. By franchising the company became part of a series of large, complete with names, product trademarks, and standard operation procedures.Franchising or franchise (from the French for honesty or freedom) is the rights to sell a product or service or service .. The Indonesian government's version, which is a franchise is one of the engagements in which the parties are granted the right to utilize and or exercise the right of intellectual property rights (IPR) or a meeting of the typical business owned by another party with a return based on the requirements set by the other party in order to supply and or sale of goods and services.Meanwhile, according to the Franchise Association of Indonesia, which is the Franchising is: A system of distributing goods or services to end customers, where the brand owner (franchisor) gives rights to individuals or companies to conduct business under the brand name, systems, procedures and ways of predetermined period of time in covering a certain area.
History of FranchisingFranchising / franchise was first introduced in 1850's by Isaac Singer, Singer sewing machine makers, when they want to increase sales distribution of sewing machines. Although his efforts failed, but was he who first introduced the business format franchises in the United States. Then, how was followed by another, more successful franchisee, John S Pemberton, the founder of Coca Cola. However, according to another source, the following is not Coca Cola and Singer, but the U.S. auto industry, General Motors Industry in the year 1898.Franchising is currently dominated by fast food restaurant franchise. This trend began in 1919 when A & W Root Beer opened the quick service restaurant. In 1935, Howard Deering Johnson in collaboration with Reginald Sprague to monopolize modern restaurant business. Their idea is to let their partners to independently use the same name, food, supplies, logo and even building design in exchange for a payment. During its development, business system has undergone various improvements, especially in the l950's which later became known as business format franchises (business format) or often referred to as second generation franchise. Development of the franchise system so rapidly, especially in his native United States, causing popular franchise as a business system in various fields of business, reaching 35 percent of overall retail business in the U.S.. While in England, pioneered the development of franchises by J. Wimpy Lyons through his efforts and the Golden Egg, in the 60's. Franchise business knows no discrimination. Owner of the franchise (the franchisor) in selecting candidates for its business partners based on mutual benefits, not based on SARA.Types of Franchising / Franchise, 
Franchising can be divided into two:• Franchising overseas, tend to be preferred because the system is more clear, the brand has been accepted in many of the world, and felt more prestigious.• Franchise in the country, is also one investment option for people who want to quickly become an entrepreneur but do not have enough knowledge of the initial devices and the continuation of this effort is provided by the franchisorObtained from various sources that there is some type of franchise business (franchise), namely:A. Trade name franchising.Franchise acquired the rights to produce. Such as: PT. Great River has the right to manufacture Triumph lingerie brand under license from Germany.2. Product distribution franchisingFranchise acquired the rights for distribution in certain areas, such as soft drinks, cosmetics.3. Pure franchising / business formatFranchise acquired the rights entirely, from the trademark, sales, equipment, operating methods, marketing strategies, management and technical assistance, quality control, etc.. Eg restaurant, fast food, education, and consulting.
Advantages and Disadvantages of Franchising
 Franchising business benefits include:- Financial assistance from the franchisor.- Brand name and reputation.- Businesses have woken- Standardization of quality.- Low production costs.- Readiness of management.- Management and technical assistance.- Profit is higher.- Protection of the region.- Obtain the benefits of market research and product development.- The risk of failing small.

 Franchising loss- Sometimes the franchisor's training program is far from expectations.- Franchisor have little freedom.
Franchisor assistance provided such as:A. Management and staff training and recruitment of employees.Training provided to management and the subordinates who operate the franchise to provide service, product, and quality in accordance with franchisornya.2. The selection and assessmentIn relation to the level of population, per capita income figures, ethnic background, traffic flow, distance to the rival, parking lots, etc..3. The design of facilities and building plans.In order to place a franchise similar to the original in terms of layout and decoration of the place.4. Specification of equipment and products.In connection with efforts to keep the same quality, in addition to controlling the amount of sales, franchise is required to purchase a variety of products made under the "secret recipe".5. Promotion and advertising support.In this case, frenchisor shall coordinate and be responsible for advertising and promotion by franchisenya. In general, advertising costs are shared by all outlets that exist in a country / region, which ranges from 1% to 6% of sales.6. Assistance in opening a franchise.For this purpose, the franchisor will give you advice in terms of staff, facilities and materials needed.7. Assistance in funding.In general, the franchisor has a good relationship with the bank. This state funding will allow the franchise to the loan terms that are lighter.8. Ongoing supervision.Record keeping and accounting, consulting, inspection and standards, promotion, quality control, legal advice, research and source material.
Here are some examples Franchise in Indonesia.Local FranchiseFast food: Fried chicken Tanzil Ny, California Fried Chicken, Beef Bowl, Isabento, Mister Bugger.Restaurant / café / bar: Mbok Berek Fried chicken, fried chicken Ny. Suharti, Ice stoned 77, Delly Joy, King Fried Chicken & Steak, Laura Arfura, Mie Tek Tek.Pizza / ice cream / donuts / cakes: Holland Bakery, Croisant de France, Nilla Chandra cakes.Education: PrimagamaForeign franchising.Fast Food: KFC, Texas Fried Chicken, Mc. Donald, A & W, Wendyis, HRestaurant / café / bar: Red Lobster, Panderosa, Sizzler, Hong Bin Lao, Black Angus, Fashion Café, Hard RockPizza / ice cream / Youghurt / donut: Pizza Hut, Round Table pizza, Jolli Bee, Baskin, Robins, Dunkin Donuts, Swensens, Yogen FruzzSoft drinks: Green spot, Coca Cola, Pepsi Cola, Gatorade
Line of Business Potential Franchis / FranchiseA. Automotive Products and Services.2. Assistance and Business Services3. Construction Products and Services.4. Educational services5. Recreation and Leisure.6. Fast Food and Take Away (Fast food).7. Food Stalls (Food Stan).8. Health Care.9. Cleaning services10. Retail