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.
