FRANCHISE

What is Franchise?

Franchise can be defined as a procedure by which the owner of a brand-name, trademark or copyright has licensed others to make use of them in selling goods and rendering out services to customers.

Brooke bob also defined franchise as a business arrangement in which the developer/owner (the franchisor) of a business concept grants others (the franchisee) the licensed right to own and operate a business based on  the franchisor's business concept.

Franchisee

A franchisee is the purchaser of the franchise, he is fully and legally independent  but economically dependent on the integrated business system of the owner.

Franchisor
This is the owner of the franchise.



ADVANTAGES IF FRANCHISING

A Proven-track Record
     This is just trying to say that once a franchise is common for thier good product and they have a success trail for good business and thier overall management is good that means the franchise has a good proven-track record and can be purchased.

Training and Guidance
     If a franchise is bought the franchisor gives training to the franchisee on how to run the business and gives him guidlines on what to do if he encounters any problem.

Financial Assistance
    The franchisr can assist the franchisee financially by lending him a sum of amount to finance the business properly and this money might be asked to be paid back when the franchisor sees some positive changes on the business.

Brand-name Appeal
      If you purchase a franchise with a good brand-name for example;Dunkin donuts your liable to have a successful business if the same services are provided like the other outlets.

An example of an international franhise is subway

An example of a national franchise