Benefits and costs of franchising

What are the costs and benefits of Franchising? DEFINITION Franchising - the word comes from the French and it intend rationalize, franchising is a method of doing occupation wherein a franchisor licenses trademarks and methods of doing crease to a franchisee in exchange for a recurring royalty fee Franchising - A legal and commercial relationship between the owner of a trademark or trade attend (the Franchisor) and an individual or group who wants to use that identification in business (the franchisee). The Franchisor slackly provides business expertise and the franchisee provides a elbow room for the overall business to grow. Franchise arrangements can be subdivided into deuce categories: Business initialise and product/ trade name franchising invoice Franchising is at least cl years old. One of the early examples of franchising occurred in New southwestern Wales, with franchising agreements between hotels and breweries. First American example was the telegraph ashes operated by various railroad companies further it was controlled by occidental Union. Modern franchising emerged in the 1950s in fast foods restaurants heavens; the well-know McDonalds restaurants was the first and most globally successful. galore(postnominal) retail sectors, curiously in the US, are now prevail by franchising to the steer where independently-run operations are the exception rather than the rule. As an example, the run around Clips Franchise organization completely opens company owned stores to mental testing new trade concepts or ideas.

As a result, bluster Clips owns very hardl y a(prenominal) of the over 200 franchisee o! wned stores. In 1994, thither were 1,134 franchisors in the Canadian marketplace that had over 60,000 franchisees or over 50 locations per concept. In that same year, more than $4 of either $10 spent at Canadian retail outlets were spent at franchise outlets, representing in excess or $90 million in sales. Just south of the border, over 3,400 franchisors were... I dont the akin the way its broken up into sections, especially the first discriminate is weird. make sure you site your quotes. If you want to get a full essay, order it on our website: OrderCustomPaper.com

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