- "Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion."
Understand factors to consider when choosing a franchise, including industry, investment required, brand reputation, and competitive landscape.
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Single-Unit Franchise: This is the most common type of franchise, where a franchisee buys the rights to own and operate one franchise unit or store.
Multi-Unit Franchise: A Multi-Unit Franchise is a business model where a franchisee owns and operates more than one franchise unit or store within a specific territory or region.
Master Franchise: A master franchise is a type of franchise model in which the franchisee is given the right to sub-franchise the brand to other franchisees in a specified geographical area.
Conversion Franchise: A conversion franchise is where an existing business owner converts their business to a franchise model.
Co-Branded Franchise: Co-Branded Franchising is a business model where two or more established brands partner together to offer complementary products or services under an agreed-upon franchising agreement.
International Franchise: International franchising occurs when a franchisor grants the rights to sell or distribute their products or services in a foreign country to a franchisee.
Business Format Franchise: A type of franchising agreement that includes all of the operational elements of the business.
Product Franchise: A franchise agreement where a franchisee is authorized to sell a specific product under a franchisor's brand.
Area Development Franchise: A business model where a franchisee has the right to develop multiple franchised units within a given geographic territory.
Turnkey Franchise: A business model in which the franchisor provides the franchisee with a fully operational business, including all necessary equipment and infrastructure.
- "A franchisor licenses some or all of its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee."
- "The franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a franchise agreement."
- "Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchisor's capital investment and liability risk."
- "Franchising is rarely an equal partnership, especially in the typical arrangement where the franchisee is an individual, unincorporated partnership or small privately-held corporation, as this will ensure the franchisor has substantial legal and/or economic advantages over the franchisee."
- "The usual exception to this rule is when the prospective franchisee is also a powerful corporate entity controlling a highly lucrative location and/or captive market."
- "Under specific circumstances like transparency, favorable legal conditions, financial means, and proper market research, franchising can be a vehicle of success for both a large franchisor and a small franchisee."
- "Thirty-six countries have laws that explicitly regulate franchising."
- "The majority of all other countries have laws which have a direct or indirect effect on franchising."
- "The word franchise is of Anglo-French derivation—from franc, meaning 'free'—and is used both as a noun and as a (transitive) verb."
- "For the franchisor, use of a franchise system is an alternative business growth strategy, compared to expansion through corporate owned outlets or 'chain stores'."
- "The franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a franchise agreement."
- "Franchising is also used as a foreign market entry mode."
- "A franchisor licenses some or all of its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee."
- "Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchisor's capital investment and liability risk."
- "This will ensure the franchisor has substantial legal and/or economic advantages over the franchisee."
- "Transparency, favorable legal conditions, financial means, and proper market research are specific circumstances that can lead to successful franchising."
- "Franchising is rarely an equal partnership, especially in the typical arrangement where the franchisee is an individual, unincorporated partnership or small privately-held corporation, as this will ensure the franchisor has substantial legal and/or economic advantages over the franchisee."
- "Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchisor's capital investment and liability risk."
- "Prospective franchisors must then compete to exclude one another."