Pros and Cons of Business Franchise, Summaries of Marketing

Download Pros and Cons of Business Franchise and more Summaries Marketing in PDF only on Docsity! PROS AND CONS of Business Franchise By SHIELA B. BAYQUIN What Is a Franchise? A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand's trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. (Google) When a businessman wants to expand his market reach, he can offer a franchise for his product and brand. It will be a joint venture between a franchisor and franchisee. The business owner is the franchisor who sells his/her rights (company name and idea) to be used by the franchisee. The latter buys this right to sell the former’s goods and services under a contract. PROS OF BUSINESS FRANCHISING  It has a ready-made business formula to follow.   It comes with market-tested products and services and established brands.  Business owners offer training and financial planning and lists of approved suppliers.   A developed organizational, marketing, and distribution systems