Definitions for "Business Format Franchising"
The franchisee has full rights to use the franchisor's product, service and trademark. The franchisor also teaches the franchisee the entire business format including marketing, selling, inventory, accounting and personnel procedures. Furthermore, the franchisor provides support via training and communications for the duration of their business relationship. Restaurants, retail and many service businesses are business format franchisors.
An arrangement in which the franchisee receives assistance on site location, quality control, accounting systems, startup practices, management training, and responding to problems -- besides the right to sell goods and services.
The business format franchise is a grant of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name or the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis' (How to franchise your business-Martin Mendlesohn).