Characteristics Of A Business Format Franchise Essay

3317 Words14 Pages
Task 1: Question 1.1:- Answer: - Type of franchises –there are many ways to differentiate between different type of franchises by their size, geographic location, etc. There are three different franchises. A business format franchise is a franchising arrangement where the franchisor provides the franchisee with an established business, including their name and trademark for the franchisee to run independently. A product franchise is also an agreement where manufacture allows retailers to use their name and trademark to distribute their products. A manufacturing franchise agreement where franchisor allows a manufacturer to using its name and trademarks to produce and sell products. ( (www.boundless.com, 2014)) Master franchises (Integrated business operations):- is also known as regional developer. A master franchisee has all the rights of an area developer and usually assumes a large area. Usually it receives a part of ongoing royalties paid by each franchisee and there may be additional income available from distribution of products through franchisees in the area. Master franchisee usually operates at least one unit for income generation, for franchise sales or for training facility. For e.g. McDonald’s master franchise usually control large area and help their other franchises as a business consultant or coach to their franchisees to help them become successful. Single product or service operations: - Buying a single unit

More about Characteristics Of A Business Format Franchise Essay

Open Document