franchising definition

franchising

Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and gains (1) immediate name recognition, (2) tried and tested products, (3) standard building design and décor, (4) detailed techniques in running and promoting the business, (5) training of employees, and (6) ongoing help in promoting and upgrading of the products. The franchiser gains rapid expansion of business and earnings at minimum capital outlay.

franchising is in the Banking, Commerce & Finance and Entrepreneurship, Management, & Leadership subjects.

franchising appears in the definitions of the following terms: technology transfer, vertical market system (VMS), management system, mercantile law, technology licensing, invisibles and multilateral investment guaranty agency (MIGA)

franchising appears in the other terms: business format franchising, product franchising

This content can be found on the following page:

http://www.businessdictionary.com/definition/franchising.html