There are not so many companies that deal with manufacturing franchising at this moment, as it is quite difficult to survive in this business. Even so, there are companies that successfully advance in this direction and receive a good profit.
Manufacturing Franchising is franchising that is aimed at the production of certain products. The principle of these relationships as follows. The company-owner of production technology of some product sells its raw-stuff to the state or local business.
If to follow to the strict criteria, we can call Manufacturing Franchising only company that produces a unique product and has franchisee technology and know-how.
A small company in such relationships not only works under the franchiser brand and sells its product and services, but it is also included to the work-cycle of the large enterprise.
It fulfills all the requirements to the technology of the process, quality, staff training, plan realization, reporting and other production issues.
This form of franchising provides intimate contact of franchisee and franchisor, detailed regulation of activities and a high degree of responsibility on the part of small businesses.
An example of such relationships is a factory that pours soft drinks. This type of franchising is widely used in this direction. Each regional or local bottling and packaging factory is the franchisee of the main enterprise.
All-known representative of the production franchising is a franchise company «Coca-Cola», which produces brand drinks at its factories. «Coca-Cola», in this case, only transfers to newly founded businesses its concentrates and production technology and its partners engage the management. Less well-known companies operate the same way, they differ only in that they do not have such a scope.