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Franchising

Franchising. An arrangement between a franchisor (a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee , which allows the franchisee to conduct a given form of business according to a given pattern of business and under an established name. Franchising.

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Franchising

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  1. Franchising • An arrangement between a franchisor (a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee, which allows the franchisee to conduct a given form of business according to a given pattern of business and under an established name.

  2. Franchising • Find 10-20 rural entrepreneurs (franchisees) • Show them that running a branch can be profitable • Sell them the business package and training (how to open and run an MFI branch as a bank agent) • Provide on-going monitoring and support, plus the link to private banks for on-lending funds • In return, take an up-front fee and a share of income

  3. Franchising

  4. Advantage of Franchising • For Franchisee • Driven purely by entrepreneurial motivations • Franchisees access funds through franchisor’s relationships with banks • Incentive to grow rapidly to recover their initial franchise purchase payment • For MFI • Franchisees help expand brand to new areas • Franchisor incentivized to build systems to maximize the number of franchisees and hence expand rapidly • Additional source of revenue for franchisor • Option to expand products to include savings, insurance, money transfers, and others

  5. Why Franchising can be a possible solution?

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