Outline Of A Business Operation Essay

A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan

So basically the advantage of the franchisor is that franchising is an alternative way of building "chain stores" in order to distribute goods that avoid the investments and liability of a chain. The franchiser will succeed if the franchisees

Franchising is a business model that allows companies to rapidly expand their market share. According to Franchise.com (2015), there are three types of franchises: distributorships, trademark licensing, and business format franchises. When two organizations enter into a distributorship, the originating company provides the rights another company to sell their products. An example of a distributorship is when an auto manufacturing company grants rights to a dealership to sell their vehicles (Franchise.com, 2015). Trademark licensing is when one company allows another company to use their trademark (Franchise.com, 2015). The business format franchise authorizes franchisees to sell the parent company’s products and/or services as well as utilize their business model. This type of franchising is the most common and is the type needed to obtain to open a new Cold Stone Creamery.

The U.S. Bureau of the Census defines wholesalers as: The activities of those persons or establishments which sell to retailers and other merchants, and or to industrial, institutional, and commercial users, but who do not sell in large amounts to final consumers.

Does the Franchisor have every strict operating standards and a method by which adherence to these standards is mandated OR does the Franchisor have a more open "freedom within a framework" standards and allow their franchisees the flexibility to make local operating decisions within specific guidelines to maximize the value of their individual business.

1. A Franchise is when a franchisor of a business gives the franchisee of another business the right to supply its product or service under the same brand identity. Specsavers is a very successful franchise for example.

Franchising is a type of business in which a business grants the other business the right to use the brand name, business systems and processes in order to produce goods and services according to certain specifications. The party which gives out the rights to the other party to use their name is called the franchisor and the party purchasing the rights of the other business to use their name is known as the franchisee. Franchising is a type of a license given by the franchisor to the franchisee in order to allow the franchisee to sell goods and services under the name of the franchisor; the franchisee pays a certain amount of fees to the franchisor to buy their license. Franchising is one of the most popular methods in the world today to do

The US Federal Trade Commission defines a franchise as: a business arrangement which allows for the reputation, (goodwill) innovation, technical know-how and expertise of the innovator (franchisor) to be combined with the energy, industry and investment of

There are two groups involved in a franchise, the franchisor (the person or company leasing the rights to the business name and system) and the franchisee (the person who

Manufacturing and Wholesale - In this type of franchise a franchiser grants a manufacturer the right to produce and sell goods using its name. This type of franchise is common among food and beverages companies. For example, soft drink bottles obtain franchise rights from soft drink companies to produce, bottle and distribute soft drinks.

Franchising is a business in which the owners or franchising sell the rights to their business. The franchising must first pay an initial fee the rights to the business, training and the equipment by that franchise.

Wholesale and retail; Where the retailer as franchisee purchases products for retail sale from a franchisor wholesaler (frequently a cooperative of the franchisee retailers who have formed a wholesaling company through which they are contractually obliged to purchase. eg. Hardware and automotive product stores).

There are three primary categories of franchises. Product and trade name franchises, manufacturing and product franchises and business format or system franchises (Lagarias, 2010). Product and trade name franchises give the franchisee the right to distribute a manufacturer’s product in a specific territory or at a specific location. You can use their trade mark or trade name in exchange for fees or royalties. An example showing the right to distribute a product is gas stations such as Exxon. The second category is manufacturing and production franchises which provide the franchisee with a specific ingredient or a specific process of manufacturing the product. An example would be a soft drink company such as Coca-Cola. The third category is the business format or system franchises which adds on an additional layer – a business format or a complete way to run the business along with the business plan, management system, location, image, and the quality of the goods and services offered. An example of this would be a fast food chain such as McDonalds. At every McDonald’s location the hamburgers should taste the same (Franchises – an introduction, 2011, p.2).

According to my point of view, franchising is simply a technique for extending a business and distributing goods and services through a permitting relationship. It is a type of business that is owned and operated by franchisees but that is branded and overseen by a usually national or multinational company. Franchise is a business that you see in different cities. They are recognizable because their company logo and products are same. A franchise is a type of business that is the same all around you go.

Franchising is defined as a business model wherein the owner of the business (franchisor) gives the independent operator (franchisee) the right to distribute his product, apply his business techniques and use his brand and/or trademark in the conduct of the business. With such a business model, the business owner can maximize their business’ profit potential in a shorter time compared to other more traditional business models. In franchise business, it is not only the products or service that the franchisee can avail; it is more of the system-the business plan of the chosen franchise. It is fact that before franchise companies offer their business packages, they already conducted strenuous