There are two types of franchising relationships: the business format franchising
and the product distribution franchising.
We refer to these businesses as the "franchising industry" because they use business format franchising
as a method of operation.
There are two major forms of franchising: product format franchising and business format franchising
. Product format franchising is an arrangement whereby the franchisor, often a manufacturer, develops a product and/or a trade name and licenses a franchisee to market its products and to use the specific trademarks or trade name of the franchisor/manufacturer (Sherman, 1991).
The Court flatly rejected the contention that the existence of a comprehensive franchise operating system alone establishes the kind of relationship that can give rise to franchisor vicarious liability for the conduct of a franchisee's employee, concluding that "a contrary approach would turn business format franchising
on its head." The amicus briefs from the IFA and franchisees lent important support to that reasoning.
Existem na literatura varios tipos de franquias (Luangsuvimol; Kleiner, 2004), embora as mais conhecidas sejam a product franchising (franquia de produto) e a franquia business format franchising
(franquia empresarial ou franquia de um negocio detalhadamente dimensionado) (Bernard, 1993; Boyle, 2002; Gillis; Castrogiovanni, 2010; Mukherjee, 2003; Preble, 1992).
Standardization and adaptation in business format franchising
. Journal of Business Venturing, 14(1), 69-85 (franchisor perspective).
In business format franchising
, you (the franchisor) allow an independent person or company (the franchisee) to use your trademarks, branding, business methods and know-how to run their own business.
and Eroglu, S., 1998, Standardization and Adaptation in Business Format Franchising
, Journal of Business Venturing 14, 69--85
Business format franchising
is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis.
Shay sees business format franchising
as a safer bet for many investors because of the assistance provided from the start.
The full-day programme gives the participants the chance to hear from existing franchisees, to find out how business format franchising
works, and to obtain guidance on researching and evaluating franchise opportunities.
For instance, conventional business format franchising
seldom involves initial investments of less than 20,000 [pounds sterling] (British Franchise Association, 2000) and typically involves the establishment of a separate self-employed legal entity, the leasing or purchase of separate premises, usually involves hired help and is usually operated on a full-time basis by a typically male franchisee to the expressed exclusion of all other forms of economic activity.