Module 5/6

describe what types of marketing and promotion a franchiser may provide, and describe how the franchisee may market at the local level. Describe at least two examples, as a consumer, of marketing and/or promotion driven by the franchiser or the franchisee

• Identify and describe three of the more common legal problems that occur between franchiser and franchisee. How are these problems avoided? What remedy is available to both parties where disputes occur?

• Define and describe the four phases of the franchiser-franchisee life cycle, How is the relationship between both parties optimized and maintained?

Reply to the following in 250 words or more, point out other observation

The operating manual is often referred to as the bible of the franchise system. "Often the operating manual covers the essential administrative, legal, and functional aspects of the franchise system" (Judd & Justis 2008, p. 213). The operating manual is created to guide the franchisee in the way the franchise should be managed. The franchisee can rely on the operating manual "to address the vagaries and uncertainties of day-to-day operations of the franchised business" (Judd & Justis 2008, p. 213). This is very helpful to the franchisee because they can reference the operating manual to answer many of the questions they may have as they run a business. This is also helpful for the franchisor because it provides the franchisee with what they need. The operating manual will guide and provide most of the answers the franchisees will have, instead of the franchisees having to contact their franchisor to address a question or issue. Another manual that is very useful to the franchise management is the marketing manual. The marketing manual "discusses in detail the features and characteristics used to market the franchised business's offering, which may be consumer or industrial goods, durable or nondurable goods, or a service" (Judd & Justis 2008, p. 220). This manual is important because it can contain "information about appropriate ways to feature a product within a line, how to promote a featured product, or the right amount and quality of service to offer in order to minimize complaints and maximize customer satisfaction" (Judd & Justis 2008, p. 220). Basically, the marketing manual aids the franchisee by directing the appropriate way to market certain items and to make sure they are uniform with the other franchises. The advertising manual is also very important. The franchisee needs to have "effective communication and promotion of the franchised product to the targeted audience" (Judd & Justis 2008, p. 221). The advertising manual guides the franchisee in the areas of advertising, promotion, graphics and signage, and public relations" (Judd & Justis 2008, p. 221). It is important for the franchisee to refer to the advertising manual in order to promote and advertise the franchise's product or service properly. As a franchisor, you want to make sure each franchisee is advertising truthfully and appropriately. Another very important manual is the pre-opening manual. This is especially important for franchisees and franchisors. Franchisors create this to ensure that everything gets done that needs to get done before the franchise is open. "The manual almost always includes checklists of activities and steps that must be completed before a grand opening can take place" (Judd & Justis, 2008 p. 223). This manual is very useful for the franchisee to use to make sure he or she is fully prepared for the grand opening.

Reply to the following in 250 words or more, point out other observations

Although features and benefits go hand in hand, they are two distinct elements that help persuade a prospective customer or franchisee to buy a product or become a franchisee. Features of a business or product may include, size, color, cost, products, logos, or name recognition. A prospective customer or franchisee will receive certain benefits from the purchase of a product or by becoming a franchisee. Benefits are generally divided into categories our text refers to as the four Ps of selling: power, profit, pleasure, and prestige. The benefits appeal to and influence the customer to make a buying decision. In other words, benefits sell (Judd & Justis, 2008, p. 176). The benefit of owning a large franchise location may be the ability to serve more customers, leading to more revenue, which in turn will provide more profit. The benefits to owning a franchise with national name recognition may be perceived as prestigious and powerful. The benefits of owning a sports car with features such as high performance wheels, tires, and a convertible top provide the owner with perceived benefits such as pleasure, power, and prestige. The benefits to owning a fast food franchise with features such as a drive through window and self-service ordering kiosks may be increased profits and prestige among franchisees.