Definition of franchising: a legal and business relationship between: -the owner of a trademark, service mark, a trade name, an advertising symbol -and an entrepreneur who pays, for the right to use that identification, to the owner for his or her own business The concept: a partnership based on trust and a willingness to work together for mutual success
Franchisees possess business skills, they pay royalties and they support the company values whereas the franchisers have a thorough knowledge of business expertise and owns the resources.
There are different types of franchises ?Trade name franchising There is only the brand name in common. ?Product distribution franchising The products are in common, they sell specific products with limited distribution network. ?Pure franchising It's a complete business format.
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[...] I worked as student in Mc Donald's, which is a perfect example for a pure franchising. Everything comes from the top: the management, the labour policy, products, the decoration They can't buy something without ordering at the central buying service. And when a new product is created, they have to order it to have the same range as others restaurants. Moreover, they have to send every month a report to Mc Donald's France, because they have to be competitive and earn always more money. [...]
[...] Product distribution franchising The products are in common, they sell specific products with limited distribution network. Pure franchising It's a complete business format. Franchising offers major benefits: the experience of the franchiser, the assistance But the franchisee has many constraints and can't develop his/her shop as he/she wants. Goal: work together for mutual success My report agree with the Lison's argument, saying that, for franchisees it's difficult to make their own decisions, especially if they are in a pure franchising system. [...]