franchise
INTRODUCTION TO FRANCHISE MANAGEMENT DEFINITION :
*In simple terms, a “franchise” is an agreement between two parties which allows one party i.e. the franchisee, to market product or services using the trademark and operating methods of the other party i.e. the franchisor. (bfa)
*“A franchise operation is a contractual relationship between the franchisor and franchisee in which the franchisor offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade name, format and/or procedure owned or controlled by the franchisor, and in which the franchisee has or will make a substantial capital investment in his business from his own resources.” - Definition by International Franchise Association
*A franchise is established when one party licenses another party to use the franchisor's trade name, trade marks, commercial symbols, patents, copyrights, and other property in the distribution and selling of goods. The parties to a franchise are:
Franchisor—the party who does the licensing in a franchise situation.
Franchisee—the party who is licensed by the franchisor in a franchise situation.
THEORITICAL/ HISTORICAL PERSPECTIVES OF FRANCHISING
The Concept of Franchising
Franchising is an agreement between organizations where a producer of product or service grant rights to independent business men to conduct business in a specified way, designated place and at a certain period of time. It is a very specific method or way of distributing goods and services. Gates (2000) argued that franchising is not a business itself, but a way of doing business. No wonder she draws a conclusion that it is essentially a marketing concept and franchising as a concept is an innovative method of distributing good and services. The franchise council of Australia (FCA) viewed franchising as a business relationship in which the franchisor assigns to the
*In simple terms, a “franchise” is an agreement between two parties which allows one party i.e. the franchisee, to market product or services using the trademark and operating methods of the other party i.e. the franchisor. (bfa)
*“A franchise operation is a contractual relationship between the franchisor and franchisee in which the franchisor offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade name, format and/or procedure owned or controlled by the franchisor, and in which the franchisee has or will make a substantial capital investment in his business from his own resources.” - Definition by International Franchise Association
*A franchise is established when one party licenses another party to use the franchisor's trade name, trade marks, commercial symbols, patents, copyrights, and other property in the distribution and selling of goods. The parties to a franchise are:
Franchisor—the party who does the licensing in a franchise situation.
Franchisee—the party who is licensed by the franchisor in a franchise situation.
THEORITICAL/ HISTORICAL PERSPECTIVES OF FRANCHISING
The Concept of Franchising
Franchising is an agreement between organizations where a producer of product or service grant rights to independent business men to conduct business in a specified way, designated place and at a certain period of time. It is a very specific method or way of distributing goods and services. Gates (2000) argued that franchising is not a business itself, but a way of doing business. No wonder she draws a conclusion that it is essentially a marketing concept and franchising as a concept is an innovative method of distributing good and services. The franchise council of Australia (FCA) viewed franchising as a business relationship in which the franchisor assigns to the