 | Franchising | |  |
Franchising may be defined as a business arrangement which allows for the reputation, (goodwill) innovation, technical know-how and expertise of the innovator (franchisor) to be combined with the energy, industry and investment of another party (franchisee) to conduct the business of providing and selling of goods and services. It is a term which can be applied to just about any area of economic endeavour.
The fact that, as a method of doing business, franchise arrangements have grown so rapidly in the last 10 or 20 years (world wide) is due simply to the fact that franchises are an effective way of combining the strengths, skills and needs of both the franchisor and the franchisee. To be truly successful the one is reliant on the other.
In most instances, franchising combines the know-how of the franchisor with the where-withall of the franchisee and, in the more successful franchising systems, the energy of both.
Advantages of owning a franchise
The main advantage of owning a franchise is the feeling of freedom that being self-employed brings. This freedom is tempered with the knowledge that the owner has invested in a proven system and has the training, support and encouragement of other franchisees and the franchisor
Some of the advantages a franchise offers are:
Freedom of employment Proven product or service outcomes Semi-monopoly; defined territory or geographical boundaries Access to a Proven brand, Trademark and instant consumer recognition Shared marketing, advertising, business launch campaign costs Industry know-how Reduced risk of failure Access to proprietary products or services Bulk buying advantages On-going research and development
IP Glossary
A full Glossary of IP terms can be found at IP Glossary
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