Franchisinh (Session 25-26)
Franchising (Session 25-26) What is Franchising? Franchising - Franchising is a form of business organization in which a firm that already has a successful product or service (franchisor) licenses its trademark and method of doing business to another business or individual (franchisee) in exchange for a franchise fee and an ongoing royalty payment. - Some franchisors are established firms (like McDonald’s) while others are first-time enterprises being launched by entrepreneurs. Two Types of Franchise Systems Product and Trademark Franchise - An arrangement under which the franchisor grants to the franchisee the right to buy its products and use its trade name. - This approach typically connects a single manufacturer with a network of dealers or distributors. o For example, General Motors has established a network of dealers that sell GM cars and use the GM trademark in their advertising and promotions. o Other examples of product and trademark franchisors include agricu...
