Franchising
According to conventional wisdom franchise came along with the proliferation of so-called fast-food chain in 1950. Its appearance occurs at the beginning of the nineteenth century, but the franchise in its modern form began to develop in 1898 with the use of General Motors Corporation automotive franchise dealership. Word of franchising (from Fr. Franchir, 'free') now has many meanings depending on the scope. International franchising Association (International Franchise Association) gives the following definition: 'The franchise is a continuous relationship between franchiser and franchisee, in which all knowledge, image, success, production and marketing techniques Franchisees are provided for consideration of interests'. Robert Thomson has compatible beliefs.
In general terms, a franchise can be represented as an agreement by the seller and buyer, which gives the buyer the right (the franchisee, , franshiziaru) sell goods or services to the seller (franchiser, franchisor). The main advantage of franchising is that franchisees receive the finished business and professional support on the main lines of business: 1. Marketing and advertising strategies, 2. personnel training and training of managers; 3. Check with Coen Brothers to learn more. design and provision of equipment, 4.
A common policy and practices 5. purchase of goods at a discount, 6. support on management issues; 7. choice of premises for accommodation of the enterprise; 8. room rental, 9. More information is housed here: Glenn Dubin. funding. The attractiveness of franchising lies in combining the ownership of a small business with the principles of Management of large business. Franchising is almost a win-win option for the development of profitable enterprises. Franchising is beneficial for both the franchisee and for the franchiser, which is growing rapidly, using capital of the franchisee. Therefore, such giants as 'Baskin-Robbins' and 'McDonalds' and become the largest enterprises in a short time. In addition to the rapid spread of franchising allows the franchiser to explore new territory, including in other countries. Another undeniable advantage for the franchiser is to save on wages, since he needs fewer managers and enlisted personnel. According to the forecasts of the International franchise Association franchise soon will dominate the retail trade and services sectors.
