Franchising is a marketing system that revolves around the valid agreement between two parties, one of which (the franchise) were given the privilege of running a business as a private owner, but on condition that the company is run according to the methods and terminology specified by the other party (the franchisor). So that role in franchising there are two parties to a labor agreement, namely:
- franchise:
an entrepreneur whose power is limited by contractual relationship ith franchising organization - franchisor:
one party / person in the franchise contract that specify the methods to be followed and terminology that must be met by others.
- Product and brand franchising
Franchise relationship which gives the right to use the product or brand which is well known - format franchising
A franchise agreement therefore get the whole marketing system and the instructions are executed by the franchisor. The advantages of franchising is the probability of success. While other reason is obtained:
- Formal training,
- Financial assistance.
- Proven marketing methods.
- Management assistance,
- Period of commencement of business faster,
- Lower overall failure rate
Types of Franchise:
franchise business opportunity