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Master the basic terms of franchises

Master the basic terms of franchises

Published in soyentrepreneur , 15 - September , 2015 abogados franquicias Opinion recommendations and legal news

Interested in the world of franchising? We give you the terms you need to know this sector and business model in Mexico.
Opening pre-activities. They are the first steps that must be taken before the opening of a franchise. They include various steps by the franchisee, for example health permits, legal, land use, and so on. Also contemplated remodeling or acquisition of local, buy inventory, hiring and insurance telephone lines, initial staff recruitment and training.
-Arbitraje. System increasingly used in franchise agreements. Resolves disputes and controversies between franchisor and franchisee through an arbitration tribunal, following the procedure agreed and applying the law agreed in the franchise agreement.
-Counseling Field. Visits that help to strengthen overall network practices and / or procedures necessary for the proper operation of the units. Far from overseeing the operation of the franchisee, also called the \\\"monitoring visits\\\" should guide you towards best practices.
Attendance continuous technique. It is the key part of a successful franchise system because it regulates the operation and business expectations. It is a specialty that gives the franchisor, in exchange for royalties, to support all the franchisee and you need it to operate properly care unit.
Technical assistance at the opening. It is advice that is provided to customers from signing the franchise agreement. Normally it covers some after the opening of the business day.
-Association Mexican Franchise (AMF). It is the association of various brands, suppliers and consultants related to the franchising sector in Mexico. It began operations in 1989 with six members. The AMF disseminates and defends the culture of franchises in the country, contributing to the organization of lectures, courses, workshops and fairs franchise, for that trade figure is recognized as one of the models for safer business in Mexico and abroad .
Commercial -Aviso. He is known as a slogan and phrases or sentences are aimed at announcing to the public products, services, facilities or businesses (commercial, industrial or service), to distinguish them from the competition. The exclusive right to use a commercial advertisement is obtained by registration.
-Training. Techniques used by the franchisor to franchisees as both personal skills necessary to operate the franchise. It can be divided into: training provided before the opening -the which instructs on the operation of the unit- and periodic training, where the franchisee and its employees acquire more knowledge about the daily life of the franchisees. These courses are the responsibility of the franchisor or an external trainer.
-Check list. Established formats that support who provides the counseling field and which are evaluated periodically general concepts such as cleaning the unit, customer service, product knowledge, business processes and environment, among other important issues.
-Circular Franchise Offering. Also known as COF is the document that contains the information that the franchisor must provide potential franchisees with at least 30 working days prior to the signing of the franchise agreement.
-Marketing Franchise. It is the proper term to describe the grant of a franchisee units. Sometimes erroneously used the term \\\"sale\\\", however, Article 142 of the Industrial Property Act defines that, for there to franchise, the franchisor \\\"grants\\\" the franchisee the right to use brand and technology. That is, a franchise is granted, not sold.
-Contract Franchise. Agreement signed wills between the franchisor and the franchisee, in order that the first grant a franchise to the second. In it, the rights and obligations of both parties are considered.
Initial -Cuota. In English it is known as a franchise fee. It is the consideration paid by the franchisee to the franchisor to have the right and make use of brand as well as receive knowledge, technical assistance and business experience.
-Cuotas Advertising. Are the amounts to be contributed for brand advertising campaigns. Usually they divided into: local advertising, which is the amount devoted only to promoting the unity of the franchisee in their area; and institutional advertising, which covers advertising as a whole and for the benefit of the entire network campaigns.
-Estandarización. It is the creation of operational schemes and technological controls within the organization, which necessarily must be implemented to achieve uniformity in operations.
-Franquicia. It is a business format aimed at the marketing of goods and services, according to which an individual or entity (franchisor) grants another (the franchisee) -for a while determined-the right to use a trademark, transmitting the necessary expertise to enable it to market the goods and services with uniform commercial and administrative methods.
Legal -Defining (Article 142 of the Industrial Property Law). There will be excess when, with the license to use a mark, given in writing, technical knowledge is transmitted or technical assistance to the person who is granted can produce or sell goods or provide services uniformly and methods is provided operational, commercial and administrative methods established by the owner of the brand, designed to maintain the quality, prestige and image of the products or services that it distinguishes.
-Franquicia Low investment. Are those whose franchise fee plus the initial investment does not exceed $ 300,000.
-Franquicia With Social Impact (FCIS). Social whose methodology and tools of project operation are institutionalized and replicated in any region or country with similar social or environmental issues. Unlike franchises aimed maximize business expansion through investors, FCIS aim to share the outline of a successful project to add ideas and facilitate joint work generating profits that impact and benefit the development of various social groups . Mainly they fall into three types: social franchising, franchises with social meaning and social microfranchises.
-Franquicia Corner. Establishment of a franchised unit within a commercial establishment.
-Franquicia Area. When the franchisor grants the franchisee the exclusive operation of several units located in a given geographical area. There may be two alternatives:
1. The franchisee operates all units in the area.
2. The franchisee provides sub franchises.
-Franquicia Conversion. It is the granting of unit business establishments operating in the same business franchise franchises. Thus, they become a network franchisees or franchise system. Conversion franchisees sign a contract identical to franchises that make up the entire network contract.
-Franquicia Conversion. This figure is presented as the units that belong to the franchisor (own units) the franchisee is granted, becoming a franchised unit.
-Franquicia Teacher. The franchisor grants the franchisee an integrated by one or more countries exclusivity, and usually requires the franchisee\\\'s obligation to develop the territory in a given time, resulting in what is known as a development contract. The franchisee can open all units by itself or sub franchise.
-Franquicia Unit. This scheme is the most traditional. Franchisor and franchisee assume rights and obligations for the operation of a component unit of a network or franchise system.
-Franquiciante. It is the natural or legal person, holder of the operating rights of a trademark holder and marketing know-how and / or production. Contractually grants the franchisee a license to use the brand which owns, transmitting while the corresponding know-how.
-Franquiciatario. It is the natural or legal person that acquires the franchisor contractual right to operate a franchise. The use of a brand and operating a business in accordance with the knowledge to be transmitted is included in the contract.
Instituto Mexican Industrial Property (IMPI). Public agency with legal personality and its own, and the legal authority to administer the industrial property system in Mexico.
IMPI is responsible for registering trademarks on behalf of an owner who will have the exclusive right to use. The validity of the records of a trademark or trade notice, and its publication in the Gazette of Industrial Property, a trademark is 10 years from the date the application was filed. Brands, notices and commercial names can be renewed indefinitely for equal periods. Franchise agreements must be registered with the IMPI for them to be enforceable against third parties.
-Know How. It is the transfer of technology and expertise by the franchisor to the franchisees to establish the standardization of their franchises.
-Manuals. It is the information in tangible or intangible means. These are documents in which all operational and administrative information is integrated units, in order to achieve standardization of operations, processes, procedures, image and service. Manuals may vary as to the needs of different systems franchises.
-Brand. It is the sign that distinguishes a product or service from others of the same species. Or have exclusive rights to use a trademark, is required to be registered with the Mexican Institute of Industrial Property (IMPI).
-Legal framework. Set of legal provisions contained in the legislation governing the operation of franchises.
-Mediación. Prior to trial or arbitration in which a third party (mediator) seeks to resolve a dispute between franchisor and franchisee procedure.
-Profile Franchisee. It is the set of features to meet the investor, which must be consistent with the philosophy and culture of each job you are looking for franchisers in your business. It includes aspects such as age, sex, education, socioeconomic status, availability, market knowledge and previous experience, among others.
-Regalía. It is the periodic consideration that the franchisor gives the franchisee for the use of the brand as well as the knowledge and technical assistance received.
-Record Contract. Obligation of the franchisor and the franchisee to record, before the Mexican Institute of Industrial Property (IMPI), the franchise agreement they have signed. The failure to register prevents the contract is enforceable against third parties.
-Territorio. It is the exclusive geographical area within which the franchisee will operate the unit. The location is an essential part of developing a successful franchise system. Every business is different and, therefore, need diversity of territories, because what works for one does not mean it is effective for everyone. Before a territory limit for your system, consider the following points.
* Target market
* Population size
* Age and sex of residents
* Economically active population
* Number of schools and universities
* Availability of resources
* Communication channels
* Government agencies
* Principal industry and commerce in the area
* Customers of the existing rotation in the area
* Spending habits
* Socioeconomic Levels
The territories are delimited by kilometers, cities, states, regions, streets round or, for travel time. All this depending on the characteristics of each spin.
-Trade Dress. Literally translates as \\\"trade dress\\\". It is the image of an establishment, comprising the combination of colors, logos, operational and business methods.
-Tropicalización. Adaptation of the franchise to the cultural needs of consumers in each region.
-Units Franchised. It is the number of business outlets available to the franchise system.

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