Franchise

                        Franchise

 Franchise- franchise is a business arrangement in which the developer/owner (the franchiser) of a business concept grants others (the franchisees) the licensed right to own and operate a business based on the franchiser's business concept. Franchise can also be a privilege bestowed to an individual or group to market a company’s goods and services.

• Franchisee- A franchisee is an individual who purchases the rights to use a company’s trademarked name and business model to do business (Purchaser of a franchise).

• Franchisor- The franchisor is the overall owner of the rights and trademarks of the company and allows its franchisees to use these rights and trademarks to do business (Seller of a franchise).

                                   Advantages of franchising

1     Training and guidance: the franchiser always provides training and guidance to the franchisee to ensure high rate of success. Franchising is usually better than starting a new business since the franchisees are trained properly on the working of a business.

2     Financial Assistance: finance needed for the operation of a business can be given to the franchisee by the franchisor. Buying a franchise is usually of great help to the franchisees who don’t have money to start up their own business. The money can be loaned to them which can be paid back when the business is progressing.

3     Brand-name appeal:

4     A proven track record:

                                  Disadvantages of Franchising

1. franchisor control
2. unfulfilled promises
3. franchise fees                               

                                 Examples of Franchise

1     

2

coca cola

    

Tantalizers

McDonald's

pizza Hub