What Is Bifranchise? [BY-FRAN-CHAHYZ]

Bifranchise is a system of business cooperation where one party (Bifranchisor) grants another party (Bifranchisee) the rights to use its business name, business methodology and the network exclusively in the nominated territory for a specified period of time. Unlike a regular franchise, the Bifranchise is a two-way business system where Bifranchisees purchases from as well as supplies products to the Bifranchisees within the network.

While franchise system mainly works as a business-to-consumer (B2C) on a local and national level, Bifranchise system mainly works 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 differences and similarities between franchise system and Bifranchise system is that:

In franchise the franchisor supplies majority (if not all) of the products and/or services to be sold by the franchisee to the public. The franchisees are not permitted to purchase products or services from any other source

On the opposite, the Bifranchisees are not obligated to buy/sell all the products offered by the Bifranchisor, i.e. Bifranchisees can choose which products to purchase from the network

Just as franchisor is in control of the franchise, Bifranchisor is in control of the Bifranchise

In Bifranchise system, the Bifranchisor acts as a centralized distributor and coordinator that supervises and manages the flow of products and funds between the Bifranchisees. 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.

The name “Bifranchise” was first used by the GIA Trading Group as we were establishing our international network of trading companies. When the management of the GIA Trading Group wanted to use the franchise structure to establish and link our trading companies worldwide, the proposal was rejected by both, the members of the group and the GIA Trading Group marketing department, because the operational method and philosophy of the business was completely deferent from that of the normal franchise. Since the legal structure of the business is that of the franchise concept, but the franchisor does not exclusively supply its products to the franchisees and the franchisees can act as franchisors and supply products to the franchisor and to other franchisees we have a two-way situation, so GIA Trading Group has invented the word (Bifranchise) and concept (Bifranchise) to be used for this business model.