Franchising is a cooperative agreement by which one firm (the franchisor) sells the right to market goods and services under its brand name and uses its business practices to a second firm (the franchisee). As an organizational form, franchising is a hybrid between market and hierarchy"(Gomez, Gonzalez and Vazquez, 2010, p.463). The franchisor as well as the franchisee play an important role in making a particular brand name successful. In fact, it is estimated that any typical franchisor would keep 15% of the business within their network and franchise the remaining 85% to other interested firms or individuals. This necessitates a good working relationship between the franchisee and the franchisor for the mutual success of both the concerned parties.
Role of a franchisee
As mentioned earlier, the franchisee is a firm or individual who takes franchise for a particular brand name and promotes it among the local people. The franchisee is an entrepreneur in every sense because the individual or firm makes a certain amount of investment in the business and manages the net profit or loss that arises out of the operations of the particular franchise unit. There are two kinds of franchising units and they are single unit and multi-unit. In the case of single unit, the franchisor offers a new outlet to a new franchisee while in the case of a multi-unit franchising, the franchisor offers a new outlet to an existing franchisee.
The profits earned from the outlet are retained by the franchisee after making two important payments to the franchisor -- royalty for every sale and reimbursement for the training and knowledge passed...
It is argued that while land tenure data can be instrumental in addressing land-related conflicts, much of the practical value is lost because of inconsistency of information and because information is not readily accessible, or cannot be combined to allow for greater depth of analysis. In practice, this means that policy-makers cannot make immediate use of the information that is available because additional time and expense are required either
. Lack of tax incentives for infrastructure development including broadband penetration. The key elements of the infrastructure including electricity, telephone and internet service are at time unpredictable in their performance. The biggest weakness of India today is its infrastructure, and with only 30% of the workforce relying on communications links to other nations, India will be forced to spend greater and greater percentages of their GNP on making their infrastructure world class. . Growth of Instant Messaging and
Ben & Jerry's: A Strategic marketing plan Ben & Jerry's the international leader in handcrafted ice cream with a social conscious is analyzed in this strategic marketing report. Developed on an integrated public-private business prospectus, the Company set the tone for trailblazing product and brand identity configurations with an ethic of social responsibility and global sustainability long before it was customary. Although now subsidiary to the products and services giant, Unilever, Ltd.
International Networking and the Outcomes of Global Networking The purpose of the research proposed is to examine international business economics and specifically the impact that global networking has had upon organizations and corporations that are global providers of products and/or services. Research questions in this proposed study include those which ask as the questions of: (1) What is the impact of global networking on international business economics both in the U.S.
Integrated Corporate Communication (ICC) and Corporate Communication (CC) The established limitations are severely customized by globalization: the size of the company (where there is not a major link with the area of the performance, delocalization and outsourcing and being dependent on the network), design of the product and sales (where the relation with the competitors may be competitive cooperative) somewhat similar to the frequency of motor industry), competitive relations of space-time,
Training Needs Analysis Practices for Managers: A Study of Saudi Arabia Private Firms Training needs analysis (TNA) is defined by Mabey and Salman (1995:158) as a "process of collecting data which allows an organization to identify and compare its actual level with its desired level of performance." The authors also indicate that this performance could be interpreted as meaning the competencies and attitude necessary for the staff to do the
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