Classnotes Franchises

Classnotes Franchises - Franchises Franchising was...

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Franchises Franchising was originally used extensively by car and beverage industries. Now, the U.S. has over 700,000 franchise outlets which account for over 25% of retail sales and 15% of gross domestic product. “Franchise” refers to both the business outlet and the business agreement. Creation of a Franchise Typically, the franchisor and franchisee are organized as separate corporations or LLCs. The franchisor licenses the franchisee to use the franchisor’s 1. trade name, 2. 4. other property such as trade dress, procedures, etc. in order to sell franchisor’s goods and/or services. Advantages: 1. Franchisor can reach new markets, 2. Franchisee runs an independent business, but takes advantage of franchisor’s knowledge and resources, 3. Consumers enjoy uniform quality of product or service.
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Types of Franchises 1. Distributor franchise. Franchisor licenses franchisee to distribute franchisor’s product. Ex:
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This note was uploaded on 10/24/2011 for the course ACCT 351 taught by Professor Staff during the Spring '08 term at University of Delaware.

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Classnotes Franchises - Franchises Franchising was...

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