Business Format Franchising – Definition


The franchisor licenses the franchisee a complete plan – a business format, operating system and trademark to his/her franchisee. The plan provides step-by-step procedures for major aspects of the business and, anticipating most management problems, provides a complete matrix for management decisions confronted by the franchisees.The franchisor also teaches the franchisee the entire business format and provides support via training and communications to the franchisee for the duration of their business relationship.





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