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Franchise is an alternate mode of conducting a business, more profitable and with less legwork than would be involved in a conventional business. Under a franchise agreement, the Franchisors allow the use of their brand name, logos, technical and logistic support, training and access to their market and marketing strategies, for an initial fee and a percentage of subsequent earnings.
The franchisee hence is on a roll as the 'learning curve' the initial slogging to establish a business is already done and over with. He or she actually gets a head start with an established business with a proven track record, public visibility and a solid consumer base.
The situation though is not so rosy. The franchisee with the help of its parent company must provide and maintain high standards of quality, service, convenience and other factors that define the business. The franchising business is regulated and certain conditions and restrictions limit the freedom of a franchise. Any deviation from the applied business model results in contract termination.........More
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