Franchises
PAN India business franchises and international business franchises
Franchising is a marketing idea that may be used by a company as a business expansion strategy. A franchisor licences to a franchisee some or all of its know-how, methods, intellectual property, use of its business model, brand, and rights to market its branded products and services. In exchange, the franchisee pays certain fees and commits to certain duties, which are often outlined in a franchise agreement.
Using A Franchise System Is An Alternate Company Growth Method For The Franchisor Versus Expanding Through Corporation Owned Outlets Or “Chain Stores.” Using A Franchise System Business Development Approach To Sell And Distribute Goods And Services Reduces The Franchisor’s Capital Investment And Liability Risk.
Franchising is rarely an equal partnership, especially whether the franchisee is an individual, unincorporated partnership, or tiny privately-held business, since this ensures the franchisor has significant legal and/or economic advantages over the franchisee. The main exception to this rule is when the potential franchisee is also a powerful corporate body holding a very profitable site and/or captive market (for example, a huge sports stadium), in which prospective franchisors must compete to exclude one another. However, given certain conditions, such as transparency, advantageous legal laws, sufficient financial resources, and thorough market research, franchising may be a vehicle of success for both a large franchisor and a small franchisee.
