Bifranchise

BiFranchise

BiFranchise is a system of business cooperation where one party (BiFranchisor) grants another party (BiFranchisee) the right to use its business name, business methodology and the network exclusively in a nominated territory for a specified period of time. Unlike a regular franchise business a bifranchise is a two-way franchise where the bifranchisee purchases from as well as supplies products to the fellow bifranchisees within the network.

While franchising works mainly as a business-to-consumer (B2C) business on a local/national level, bifranchise works mainly as a business-to-business (B2B) on an international level. Bifranchise operates under the same laws, rules and regulations as the international franchise system.

The major difference between franchising and bifranchising is that in franchising, the franchisor supplies majority (if not all) of the products/services to be sold by the franchisee. The franchisees are not permitted to purchase products or services from any other source. The bifranchisees are not obligated to sell all the products offered by the bifranchisor, i.e. bifranchisees can choose which products to purchase from the bifranchise network. Just as the franchisor is in control of the franchise, the bifranchisor is in control of the bifranchise.

In bifranchising, the bifranchisor acts as a centralized distributor and coordinator who supervises and manages the flow of products/money from the bifranchisees to the bifranchise network. The bifranchisor charges the bifranchisees a percentage of each transaction and royalty fees. Various tangible and intangible assets such as websites, transaction clearing services, currency exchange, marketing, sales training and international advertising are offered by the bifranchisor to support the network.

History:
The word Bifrancise was invented by Global Importex Access LTD in the need to explain their business philosophy because the operational method and philosophy of the business was completely deferent from that of the normal franchise concept.

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