Benefits and costs of franchising

What are the costs and benefits of Franchising? DEFINITION Franchising - the word comes from the French and it factor rationalize, franchising is a method of doing occupation wherein a franchisor licenses trademarks and methods of doing transmission line to a franchisee in exchange for a recurring royal house fee Franchising - A legal and commercial relationship between the owner of a trademark or trade reveal (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 guidance for the overall business to grow. Franchise arrangements can be subdivided into 2 categories: Business initialise and product/ trade name franchising tale Franchising is at least cl years old. One of the earliest 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. more retail sectors, curiously in the US, are now prevail by franchising to the steer where independently-run operations are the exception kind of than the rule. As an example, the run around Clips Franchise organization only(prenominal) opens company owned stores to mental testing new merchandising concepts or ideas.

As a result, bluster Clips owns ve ry fewer of the over 200 franchisee owned s! tores. 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 billion in sales. Just south of the border, over 3,400 franchisors were... I dont the deal the way its broken up into sections, especially the first break up 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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