Abstract
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.
