Franchising



Franchising

The high cost and risk of developing new products and penetrating new markets is a major force that drives organizations to work in partnership. In any type of business format franchising, a franchisor grants a franchisee the rights to use its brand name, product and business system in a specified manner for a specific period of time. Franchisees gain access to a proven brand concept and business system and franchisors gain access to the franchisees' local market knowledge. While these complementary benefits help to explain the popularity of franchising, they also underpin the main issue of contention in franchise systems, ...