Business Format Franchise Definition Quizlet

Some of the biggest brands that adhere to this type of franchising are mcdonald s dunkin donuts starbucks and kfc.

Business format franchise definition quizlet. A franchise is a license that a party franchisee purchases that allows them access to use a business s franchisor proprietary knowledge processes and trademarks to sell products or provide. Start studying business franchise. Franchisor authorizes franchisee to sell their products goods services and give rights to use their trademark and. A contractual agreement takes place between franchisor and franchisee.

What is a business format franchise. Franchising is a well known marketing strategy for business expansion. Learn vocabulary terms and more with flashcards games and other study tools. Its your own business business format should be well thought through with reliable operations.

Ongoing advice support from franchisor should be running a business with a recognised and trusted brand name reputation. Business format franchising according to business dictionary is an arrangement where a franchisee receives in addition to the right to sell goods or services the franchiser s designs quality control and accounting systems operating procedures group advertising and promotions training and in case of hotels and travel. Franchisee purchases a complete business system including license for trade name use products or services to be sold or resold operations methods marketing plan quality control process business support services etc. In a business format franchise the parent franchisor is the one who is responsible for brand building and for executing all the pull strategies for.

Don t necessarily need experience of the market benefits from franchisors sale e g. Pure business format franchising. Some of the best examples of the business level franchise is mcdonalds kfc and other such fast food chains. A business format franchise is one wherein all the different aspects of the business are copied and replicated at a particular location.

You can tell how closely the franchisor and franchisee work with each other from these big brands by the similarity of. Franchising is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a payment franchise fee and usually a percentage of gross sales or profits royalty.