Franchising Benefits And Strategies Of Franchising

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Franchising It is said that today there is a total of 750,000 franchise establishments within the U.S. itself. Franchising is a long-term agreement between two parties, and is when the franchisor grants the franchisee the right to use a trademark or trade name in a business process. In a franchise agreement the franchisee would in most cases purchase or lease the trademark or logo from the franchisor. Within this transaction the franchisee also pays its franchisor sales revenue or royalty fees. In return, the franchisee receives detailed and structured tactics, describing the process of how the business is run. These tactics include promotion, hiring and training employees, upgrading product or service, as well as maintaining design or décor (What is Franchising). It is common for people to think of franchising as an industry, and although it can be considered to be an industry, it can also be seen as a “business model”. Dr. Vinay Garg, a professor at Missouri State University took time researching franchising benefits and strategies. Garg has studied and surveyed over 1000 franchise businesses. He found that franchising could be a great opportunity for any individual to become an entrepreneur by starting his or her own business. Since franchisors such as McDonalds or Dunkin Donuts is well known to the public, the franchisee will find it less difficult to bring in customers (Mostyn). Companies and large businesses such as McDonald’s and Starbucks are known for taking

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