FRANCHISE

•      The word franchise is of Anglo French derivation from France meaning free, and Dr Donald F. Kuratko defined franchise as any arrangement in which the owner of a trade mark, trade name, or copyright has licensed others to use it in selling goods or services

•      Definition of franchise from the AUN library source;  A trading agreement between a supplier (franchiser) and retail outlet (franchisee), often in the service industry, where the retail outlet is given the support of the supplier in return for use of the franchiser's brand and various marketing tools.

.•         A franchisee is legally self-sufficient but economically reliant on the incorporated business system of the franchisor (seller of the franchise). Thus the franchisee can function as an autonomous business person but still recognize the merit of a provincial or national organization.

·         A franchisor is one who has the right to grant a franchise. The franchisor’s success    depends on the success of the franchisee.

                                                                          

THE ADVANTAGES OF FRANCHISING ARE AS FOLLOWS.

·         Training and Guidance:

One of the benefits of buying a franchise is that the franchisor will commonly provide both training and guidance to the franchise. Due to this, the probability or possibility of success to a great extent is more for national franchisees who accept this aids as compared to small-business owners in general. E.g. park and shop

·       Brand-Name and Appeal

 A franchisor’s name is an attractor, in any establishment. Any distinct entity that buys a renowned or famous national franchise, specifically one with a big name, has a good possibility to succeed.

·       Financial Assistance  

A franchise can be a nice investment, because the franchisor may be able to assist the new owner obtain the financial aid or assistance needed to run the operation or project.

·       Proven track record

The ability of a franchisor to prove the operation of a franchise determines how successful the franchisee would be. A franchise that has lasted for a long time(10-30 years), with different layouts, branches and location of the stores, as well as the pricing policy, quality of goods and the overall management system being successful; the franchise automatically has a platform laid out for him or her to start up a sustainable business.

EXAMPLES OF FRANCHISING IN NIGERIA

Training, consulting and brokerage services e.g. referral institute and quick services like tantalizers, chicken republic women fitness/juice bar/health products (franchisinginnigeria.com).

EXAMPLES OF FRANCHISE IN GERMANY

Alloy wheel repair specialists, Alpha Graphics Business Centre (us franchise available in germany).