The franchise model

Author: Paul | Subject: Business

The franchise model image
Article Excerpt: The dictionary definitions for the term franchising varies considerably and, in many cases do not adequately, nor accurately, define the term. For example ‘’ suggest that franchising is “A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor’s trade name and usually with the franchisor’s guidance, in exchange for a fee.” However, to some extent this definition might be unwittingly misleading. For example, there are cases where franchise opportunities are offered that have no proven record of accomplishment, being simply an idea that an entrepreneur is endeavouring to roll out across a wide geographical area within a limited timeframe, therefore using other people/businesses to aid rapid expansion of market penetration and share....