Hoffman Franchise System
Feasibility
Determining the location of the facility to be opened
Concept
Hoffman concept work in facilities
Installation
Layout and installation of machinery and equipment
Education
Practical 1-month training
Introduction
Necessary promotion of the facility
Opening
Opening of the facility after the training
What is Franchising?
It is the use of the trademark by the owner of the exclusive right of the trademark by someone else with a pre-determined agreement. Generally, the franchisee provides certain support to the investor who will open a franchised branch. This support can be in the form of decoration of the branch, staff training, supply of goods, etc. The supervision and support service to be provided by the concessionaire is important for the reputation and maintenance of the brand in question. As a result, the use of the trademark by another investor brings with it certain risks. Ultimately, the reputation and prestige of the brand will be positively or negatively affected by the performance of the investor.
Benefits of Franchising System
The franchising system, which is widely used all over the world, offers entrepreneurs the opportunity to get ahead of their competitors in different countries/regions. For example, let's assume that a U.S. company wants to invest in the Turkish market. In this case, the company will have two options. Either the company will open a branch directly affiliated to itself - in which case both time and financial costs will be high - or it will transfer the name right to the investor in that country within certain limits through the franchising system. In this way, both the investor and the concessionaire will benefit. The investor has the opportunity to make a profit without incurring the cost of creating a new brand, while the brand owner gets a share of the profits without incurring the cost of opening a new branch.
Responsibilities
We have mentioned above that the franchising system imposes important responsibilities on both the transferor and the transferee of the brand. It is only possible to achieve success with those taking responsibility and a well-defined framework for cooperation. The name right holder is responsible to the franchise right holder for ensuring that the image of the brand is not damaged and the quality of service is not reduced. This will also increase the profitability of the entrepreneur. A healthy audit mechanism will help to increase the quality of service while maintaining trust between the transferor and transferee of the naming rights. This mechanism is an important pillar of cooperation.
