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Thank you for asking my opinion of this question. Franchising refers to businesses that are BRANDED, businesses that have world known brands (products or services). Examples from different branches; Coca Cola ( is produced in many countries under the franchise) , Starbucks Coffee, world known entertainment quizzes like who " Who wants to Be a Millionaire? or "Deal or no Deal "... So it means different branded products and services can be a subject of Franchise . Branded companies earn money only by giving the right some other company to use and work under their branded name.
Franchising creates a win win for both, franchiser and the franchisee therefore has become the easiest way to promote a brand alomost in every field be it distribution, fast food, fashion etc. Franchiser may avoid unnecessary fixed cost such as infrastructure etc and franchisee gets the opportunity to use an established brand name along with complete guidance.
All kinds of businesses have started coming into franchise business. Currently some of the field they are established are Fast food sector like burger king, Subway, Mcdonald, Pizzahut, KFC, Coffe shops like Star bucks, Costa, Car wash, Car rental, and many more. the main advantage of franchise business is that anyone who can invest can start a business without any experience as they just blindly follow the instruction of their successful franchisor.
What futher more for the speedy franchising business ?
I believe almost everything. We are very familiar with the fast food sector, but there are many businesses to mention for example real estate, hotels, computer services, car rental, advertising, ........
1- manufacturing franchise: gives the licensee whereby the licensee commodity manufacturing rights and sold under the licensed trade name and trade mark, using it raw materials or specifications or special licensee techniques, and a lot of work with this kind of privileges in the food and beverage research Industries is licensed to provide the manufacturer or producer (licensee) basic components or raw materials or technical knowledge and licensed to the same time using the trademark and trade name or own patented technology.
2- Distributing franchise:
The aim of this form of concession mainly to the work to establish the distribution of manufactured goods centers by the licensee or manufacturer to him, and the licensee or his representative under this format manufactures commodity and sold to licensees who take themselves selling to consumers under the brand private licensee, and provides this form of concession to the licensed distribution system to market his product is similar to the relationship between suppliers and sellers, but the difference here is that the franchise system attaches greater importance of the commercial licensee to mark where the licensee prevent the licensee from the sale of a commodity competition, and examples of this type of franchise car dealers and fuel filling stations.
3- Business Format franchise:
And are hereby authorize the use of the method of work or own rules instead of focusing on giving the right to sell Asalaho service shop franchise, so the shape of the concession is granted licensee Takhalh trafficking license under the licensed business or its brand name, taking advantage of the full package, college or formulas Plan related and to manage the operation of the business, including all the necessary elements for the management of work in addition to the training and assistance needed in order to meet the fees are predetermined.
Today is the time to increase customer base/ reach & service . One of the ways : Where a customer can be effectively managed is franchising . " Only those products / companies flourish where there is direct customer interactions . The supplier takes royalty of its product & some part of profit sharing for future venture & try to train the third generation entrep. who have the talent, money, time & inclination to start a small venture of its own .
Any product which is a consumer direct selling product -could go for franchising . Provided the product has an in build brand positioning & brand equity .
Agreed with previous answers, even it happens in Education sector too (School institution), specially private school. Thank you.
there are several good answers about this subject ... I only know it in the food industry used like restaurant chains or fast food; coffee places, car rentals, Hotels, real estate firms..... and I know that it is very expensive to buy into it and you can not have at times the franchise you wish to buy in, if the company feels there is not enough revenue coming in when2 or more of the same type of stores exists...
All the above answers I agree with them.
Food retailers, restaurant, hotels such as Costa, starbucks, Hilton hotel, Mcdonalds.
Brand clothing retailers such as, Nike, Reebok, Zara, H&M
But the hotel and food chain industry are more popular and succesful in franchising.
