writer of the article Belito Garcia

study of the history of the franchise are examples of business practices, similar to the current franchise system since the twelfth century in London. But in general it is assumed that the franchise system began in the United States after the Civil War, when the Singer Sewing Machine Company network of stores that sell used and brand their products created. We must make clear that the franchise system was due to a creative person present invention. It was created and developed a solution for the business in response to the problems they faced related to the desire for its activities to expand when needed to support its basic functions as customers prefer over the other account. Therefore the development and growth of the system is a natural and continuous, parallel with the decrease of the geographical limitations, the franchise system’s appearance is directly related to the growth and expansion of activities.

“franchise business is a system in which the franchisor gives the franchisee the right to the trademark or patent on the exclusive right to distribute or partially exclusive products or services and may also have the right to The technology implementation and business use, or using the operating system developed and owned by the franchisor, directly or indirectly, for compensation

USED Franchise Systems

Franchisor: .. Is the entity that others (franchisees ) and the limited use of the mark whose rights are involved grants to the more advanced systems also to the standards and know-how .. needed for the successful operation of the transferred business information, the franchisee to use, deploy and manage their own business

Franchisee:. person or entity who buys the franchise

Franchise:. the unity of a particular network

Territory: Geographical area defined in a franchise agreement between the parties, which ensures exclusivity or preference of the franchisee

royalties to reward the franchisor and franchisee in exchange for the transfer of the franchise rights to the franchisee

Promotion Fund: .. of the Fund, where all franchises a network of explicit marketing and advertising to promote networking, which are common to all, this fund is managed by the franchisor, and possibly representatives participate in the franchise

Franchise Offering: … document required by law, the franchise must contain all necessary information to the prospective franchisee to the franchise investment opportunity analysis

Belito Garcia is a Business Development Coach and author of www.GentryLiving.com pride. He regularly writes articles on various topics such as entrepreneurship and self employment. He invites you to look at the “new business model”, which has a lower start-up costs and has higher margins than most franchise companies.

This entry was posted on December 29, 2011 at 12:10 pm. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Posted in Franchising by No Comments Yet