Franchising – a successful form of entrepreneurship

Abstract

A franchise is a contract through which a person, called a franchisor, grants to another person, the franchisee, the right to exploit a set of intellectual property rights for the purpose of producing or marketing certain types of products or services. The advantage of this contract is that the franchisee has reduced costs for promoting his products or services. On the other hand, there are also some disadvantages, such as the company will never belong to you. In the Business Format Franchising, the franchisee generally receives site selection and development support, operating manuals, training, brand standards, quality control, a marketing strategy and business advisory support from the franchisor.