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Cyril Harrison
Senior Designer
Asked a question 8 months ago

What is franchising in a business and how does it help ?

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A Franchising is a contract between Franchisor and Franchisee. Where in Franchisor authorises  franchisee to take up the brand name and trademark to sell the goods and services  with their brand name,  Here franchisee acts as a dealer.

Franchising helps in expanding business, building good brand name, reaching to more customers and acquiring the goodwill. Leading examples are McDonald’s, Dominos, KFC and lots more.

Franchising is method, that are used by business enterprise for expanding the existing business and services through a licensing relationship. A Franchise agreement is a agreement between Franchiser (licensor) and the franchisee(licensee)  where the former gives the right to use the trademark or trade-name, along with some business systems and processes, to market a good or service in accordance with certain specifications.

It helps the company as its a long term commitment, so it continue for long

The quality of management will improve over time, as there are different minds working on a same thing, so different ideas will come and will help in the growth