Business

Chapter 5
Key Notes and Concepts



Franchising = the formal relationship that is established by a franchise contract, a legal document, that enables a firm (franchiser) to expand by allowing an independent businessperson (franchisee) to us the franchiser's operating methods, financing systems, trademarks and products in return for a fee.

Advantages of Becoming a Franchisee:
„h Ability to quickly expand a company with limited capital
„h Training programs and operating manuals that teach the retailer how to operate the business, allowing individuals to enter the business with little previous experience
„h Manag...