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what is franchising ?

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the term franchising means an agreement between franchisor and franchisee where franchisor grants legally the use of his expertise , trademark,  selling goods and services , ideas etc. and in return franchisor asks commission and some percentage share of franchisee 's revenue or profits . it is contractual entry mode used by the firms or companies to enter into new markets in other countries. 

following are the advantages : 

  1. association with a well established brand or product 
  2. assistance in getting required finance for establishing the business. 
  3.  it helps in expanding into different regions of the world .
  4. assistance is given in terms of Site location and selection .
  5. operating according to laid down standard procedures and policies 
  6. get access to market research along with advertising assistance . 
  7. involves low political risk

 the disadvantages of franching are as follows :

  1. franchises may turn into  competitors in future. 
  2. if franchise is given to wrong person it can harm the reputation and goodwill of the company in the market .
  3. quality of the product can be inconsistent which can have  negative impact on products image.

proceeding with relationship wherein a franchisor gives an authorized benefit to the franchisee to work together and offers help with sorting out, preparing, promoting, showcasing and overseeing as a byproduct of a money related thought. Diversifying is a type of business by which the proprietor (franchisor) of an item, administration or strategy gets conveyance through subsidiary sellers (franchisees).


In the event that purchasing a current business doesn't sound appropriate for you yet beginning without any preparation sounds somewhat scary, you could be appropriate for establishment possession. Exactly what is an establishment - and how would you know whether you're removed to be a franchisee? Basically, a franchisee pays an underlying expense and progressing eminences to a franchisor; consequently, the franchisee gains the utilization of a trademark, continuous help from the franchisor, and the option to utilize the franchisor's arrangement of working together and sell its items or administrations.


Notwithstanding a notable brand name, purchasing an establishment offers numerous different focal points that aren't accessible to the business visionary beginning a business