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What is franchising
The term itself has its origins in an old French word for ‘liberty’ – the freedom or ability
to do something.
A Franchise is a right granted to an individual or group to market a company's goods or
services within a certain territory or location. A franchisor is an individual or
organization granting a Franchise. A Franchisee is a person or organization purchasing a
Franchise.
In other words, franchising is a strategic alliance between groups of people who have
specific relationships and responsibilities with a common goal to dominate markets, i.e.,
to get and keep more customers than their competitor. It is a license to operate and
individually owned business as if it were part of a chain outlet or stores.
Franchising started in England and was successful in USA. Although other par its of the
world lag somewhat behind, franchising is well established in every free market
economy across the globe. The main reason for this is that your chances of success as a
Franchise are much higher than as a business that is operated by a lone entrepreneur in
isolation. |
