2. Definition
Franchising is a form of marketing and distribution in
which the owner of a business system (the franchisor)
grants to an individual or group of individuals (the
franchisee) the right to run a business selling a
product or providing a service using the
franchisor's business system.
Source: https://www.franchisedirect.com/what-is-franchising-definition/
3. FRANCHISE AGREEMENT
FRANCHISOR FRANCHISEE
Owns trademark or trade name
Provides support:
• (sometimes) financig
• Advertising & marketing
• Training
Uses tradmark or trade name
Expands business with franchisor’s support
Recieves fees Pays fees
Source: An introduction so franchising,
https://unstats.un.org/unsd/nationalaccount/workshops/2008/newyork/ig27.pdf
4. The franchise is a top management strategy with three main objectives:
Ø Rapid growth
Ø Domination of markets
Ø Brand building
5. There are two main types of franchises
Product distribution Business format