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Old 02-23-2010, 07:49 AM   #1
Tobias Hall
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How does CrossFit affiliation differ from Franchising?

When I explain the CrossFit affiliation model to people some, as you probably also have experienced, say itīs like franchising. So I looked up the definition on franchising, http://en.wikipedia.org/wiki/FranchisingYOU MUST ANNOTATE ALL LINKS WHETHER WORK AND FAMILY SAFE., and Iīm not sure I can tell the difference. Since itīs stated on crossfit.com that CrossFit isnīt franchising and never will be I got curious in what way CrossFit differs from franchising?

Can anyone help me straighten this out?
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Old 02-23-2010, 08:04 AM   #2
Casey Raiford
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Re: How does CrossFit affiliation differ from Franchising?

I am by no means an expert on this or a lawyer by any stretch, but I'll take a crack at a practical example. Have you ever noticed that all McDonalds, KFCs and chain convenience stores looks the same, provide the same products and offer similar services? If you go to a few different CF boxes you'll notice that aside from some general similarities (e.g. equipment, terminology, etc) each box is it's own, unique animal. Some are more suburban-friendly, some are strength bias-oriented, some are partnered with MMA training and so on. Affiliation means you fall under the CF umbrella, are entitled to use the term "Crossfit" and can open a business as such (or run a military/non-profit). Aside from website requirements (have one, post a link to the CFJ, etc) there really aren't any other stipulations. Hope that helps.
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Old 02-23-2010, 09:10 AM   #3
Katherine Derbyshire
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Re: How does CrossFit affiliation differ from Franchising?

With franchises, the franchising company often regulates everything about the store: logos, store appearance and floor plan, what products will be sold for how much money, location relative to other stores, etc. The franchisee may even be required to buy their merchandise from the franchiser. Franchise fees can be quite substantial, but in return the franchisee often gets quite a bit of infrastructure and support.

An affiliate fee, in contrast, pays for the right to use the Crossfit name and be listed at crossfit.com, and that's essentially it. Almost all business decisions are up to the affiliate owner.

Katherine
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Old 02-23-2010, 10:17 AM   #4
Randy Tarasevich
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Re: How does CrossFit affiliation differ from Franchising?

CrossFit licenses the use of their trademarked name. Licensing is when you basically pay a fee for the right to use a trademark for marketing purposes. Kind of like how Reebok pay licensing fees to each NFL team is uses in the production of their football jerseys. Not a lot of control on the licensor's (person issuing the license) part.

Franchising is when you pay to use a trademark also, but the franchisor (person selling the franchise) has much greater control over the franchisee (person buying the franchise). Like Casey said, franchisors make every franchisee the same by setting facility requirements, product quality requirements, and a lot of other things. It is to ensure uniformity and quality control among the different franchisees. Typically there is a huge start-up fee and then you a s franchisee have to pay royalties to the corporate HQ every month or quarter. Royalties are fees that are based upon your revenue, usually 7-10%.
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Old 02-23-2010, 02:59 PM   #5
Tobias Hall
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Re: How does CrossFit affiliation differ from Franchising?

Thanks for your help guys, I really appriciate it! I have to explain this in my research study and I think treating it like a licensing will clearify it for the reader. Also the fact that CF doesnt strive to control is a clear difference...

Does anyone know how CrossFit HQ is organized, how many employees do they have? Who runs The CrossFit Journal for example? Maybe someone knows where I can find answers on this kind of questions?
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Old 02-23-2010, 07:23 PM   #6
Blair Robert Lowe
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Re: How does CrossFit affiliation differ from Franchising?

unknown wfs

http://journal.crossfit.com/2009/11/...s-crossfit.tpl

Somewhere in the CFJ, there is an article that delineates who is who in the CFHQ but I can't find it and I did search a bit.
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Old 02-23-2010, 09:06 PM   #7
Lara Lewis
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Re: How does CrossFit affiliation differ from Franchising?

Quote:
Originally Posted by Blair Robert Lowe View Post
unknown wfs

http://journal.crossfit.com/2009/11/...s-crossfit.tpl

Somewhere in the CFJ, there is an article that delineates who is who in the CFHQ but I can't find it and I did search a bit.
Is this the one you're thinking about?

http://library.crossfit.com/free/pdf...sFit091016.pdf (wfs)
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Old 02-24-2010, 12:51 AM   #8
Blair Robert Lowe
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Re: How does CrossFit affiliation differ from Franchising?

Quote:
Is this the one you're thinking about?
That would be it.
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Old 02-25-2010, 01:22 AM   #9
Tobias Hall
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Re: How does CrossFit affiliation differ from Franchising?

Great stuff, this oughta do it! Thanks...
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