A parent company grants another independent entity the privilege to do business in a pre-specified manner, including manufacturing, selling products, marketing technology and other business approach.
A system for expanding a business and distributing goods and services.
The right or license granted to an individual or group to market a company's goods or services in a particular territory.
Method of marketing goods and services via a proven business formula licensed for others to copy Franchisor - The owner of the original operation. The Franchisor decides to allow other people to replicate their system in exchange for a fee.
The selling of a licence by the owner (franchisor) to a third party (franchisee) permitting the sale of a product or service for a specified period. In business format franchising the agreement will involve a common brand and marketing format. Many service businesses are operated under franchise include well-known brands such as Burger King, KFC and KwikPrint
a strategy whereby the parent company (franchiser) grants the franchisee the right to use the parent's name, reputation, and business skills at a particular location or area. p. 236
A particular form of licensing arrangement in which IP and/or a business system of a franchisor is used under licence by other tradersâ€”the franchiseesâ€”typically with a degree of support (e.g. marketing support, supply of stock) and control by the franchisor.
A long-term cooperative relationship between two individual companies ? a franchisor and one or more franchisees ? based on a legal agreement in which the franchisor provides a licensed privilege to the franchisee to do business.
Involves a contractual arrangement between a franchisor (a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee, which allows the franchisee to conduct a given form of business under an established name and according to a given pattern of business.
A form of licensing by the service sector for companies that want to export their trademark, methods, or personal services.
A method of doing business by which a company the Franchisor grants to a person the Franchisee the right to use the trade marks, proven operating system, the company's know-how, techniques and procedures in order to advertise and offer, sell or distribute the goods or services which the Franchisor is known for and who has developed a market awareness and customer acceptance.
Franchising is where a business allows a person to set up an operation using the business's own trademarks, marketing strength and support systems. Stock may be supplied to the franchisee with a percentage profit for the franchisor; alternatively a fixed monthly franchise fee may be charged. The franchisee will also usually pay a capital sum to buy into the franchise. A franchise can offer a successful business concept, proven marketing and operational methods, ongoing support, an established identity and a low failure rate. Franchising provides businesses with an opportunity for expansion without an enormous outlay of capital. They can benefit from 100% commitment from their franchisees who have a real stake in the business. Examples of well-known franchises include McDonalds and Benetton.
Form of licensing by which the owner (franchiser) of a product, service or method obtains distribution through affiliated dealers (franchisees).
Neither an industry nor a business, but a method of doing business within a given industry. At least two parties are involved in franchising: the franchisor and the franchisee.
A continuing relationship in which the franchisor provides a licensed privilege to the franchisee to do business, and offers assistance in organizing, training, merchandising, marketing and managing in return for a consideration. Franchising is a form of
commercial agreements allowing one business to deal in a system or product controlled by another eg most car manufacturers give franchises to sell their cars to local garages who then operate using the manufacturers name and corporate brands.
Is a very successful and expanding method of marketing, selling and distributing goods and services. It combines the skills and experience of the franchisor and the goodwill created by the brand. Correctly bringing together the property rights and the extra financial resources provided, plus the entrepreneurial skills and drive of the franchisee, achieves success.
An arrangement whereby a supplier (franchisor) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration. p. 432
A form of licensing granting the right to use certain intellectual property rights, such as trade names, brand names, designs, patents and copyrights. p. 93
a method of doing business within a given industry that involves at least two parties - the franchisor and the franchisee. The contract binding the two parties is the franchise.
The decision to market your business, services or goods for a fee or a per-cent of the gross sales. Restaurants can draw up a franchise agreement allowing others to use their name, advertising, expertise and concept for a fee.
A method of conducting business in an industry that involves a franchisor (parent company) and franchisee (someone who pays for the right to sell the parent company's products and use their trademark/name).
This is a method of expanding a business that involves at least two parties, namely the franchisor and the franchisee.
An arrangement in which a supplier grants a dealer the right to sell a product in return for some percentage of the total sales; typically, the supplier provides buildings and equipment, management advice and marketing assistance to the franchisee, who agrees to operate according to the franchiser's general rules.
An organizational form in which a firm (franchisor) with a market-tested business format enters into a contractual relationship with operators (franchisees) operating under the franchisor's trade name. In exchange for support services the franchisor receives fees and royalties.
Business format franchising consists of selling a package of marketing experience and other business assistance to franchisees, who set up a business using the trade marks or service marks and the general get up of the franchiser. The franchisee will typically have a territory within which to sell the goods or services. Franchising benefits form an EU block exemption which defines those clauses that are acceptable under EU laws, thus avoiding the need for specific notification of the agreement to the European Commission.
Franchising (from the French for honesty or freedomRandom House Webster's Unabridged Dictionary, 2nd Edition) is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage piece of gross sales or gross profits as well as the annual fees. Various tangibles and intangibles such as national or international advertising, training, and other support services are commonly made available by the franchisor, and may indeed be required by the franchisor, which generally requires audited books, and may subject the franchisee or the outlet to periodic and surprise spot checks. Failure of such tests typically involve non-renewal or cancellation of franchise rights.