The definition of a franchise
The definition of a franchise
Knew of the concession contract (Franchise) as a contract between two legally independent and economically based whereby a terminal and call it the franchisor to grant the other party and call it granted approval to use one or more of the rights of intellectual and industrial property (trade name, trademark, patent, Industrial Designs), or know-how for the production of goods or the distribution of its products or services under the brand produced by or used by the franchisor, according to the instructions under the supervision of, exclusively in a specific geographic area and specified period of time with its commitment to provide technical assistance, and that in return for money or to get advantages or economic interests.
How did the franchise (Franchise)
The Company Singer Sewing is or was using the right franchise in 1871 America, where the created spread across the different countries to sell Mckinadtha, followed by the beverage companies that gave license to other companies to manufacture and distribute their products under the same brand followed by the auto companies, then followed them after a lot of companies, at the same time the present system invades the concession (franchise) more than 75 different major industry spread in most countries of the world. The system of franchise (Franchise) facilitates corporate donors for expansion with minimal capital and provide them with partners who provide the same product and service under the brand itself with the provision of technical support for the production of the commodity or service, as is the franchise (Franchise) is also a means for technology transfer from developed countries to other countries, the company that sells licenses its system and style called the concessionaire or owner of the concession or the awarding those who Inaugurates their units taking advantage of that license Vismon concession holders or beneficiaries of the concession or grantees.
Results and statistics on the work of the franchise (Franchise)
- Indicated Statistics Association Franchise America’s total sales during the franchise amounted to Iozay trillion to approximately U.S. $ This is equivalent to 40% of all retail sales and services in the United States of America, and there are 8 million workers were employed in 75 industry is on the right franchise.
- There are franchise opens new every 8 minutes a day in the United States, and in 1996 there were more than 40,000 franchise again, as studies have shown that the work of the franchise survive and flourish.
- Studies have shown governmental organizations in the United States that 77% of independent businesses have closed their doors within 5 years of opening, while only 8% of the work of the franchise the new closed doors in the same period means that the failure rate of franchise 10% It’s almost here it is clear that franchising is characterized by low risk significantly when compared to independent investment.