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प्रश्न
Enumerate the characteristics of franchising.
उत्तर
- A franchise relationship is based on an agreement that lays down the terms and conditions of this relationship.
- The term of the franchise may be for 5 years or more. The franchise agreement may be renewed with the mutual consent of the parties.
- The franchisee gives an undertaking not to carry any other competing business during the term of the franchise, and the franchiser gives an undertaking not to terminate the franchise agreement before its expiry except under situations that may justify the termination of the franchise agreement.
- The franchisee agrees to pay specified royalty to the franchiser, as per the terms of the franchise agreement.
- Franchise means selling the same product and maintaining a similar type of shop decor (i.e. style of interior decoration) for which the franchiser provides assistance to the franchisee in organizing, merchandising, and management.
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संबंधित प्रश्न
Who is a franchisor?
Explain in brief the three ways in which an organisation can expand externally.
Enumerate the importance of franchising.
What are the disadvantages of franchising to the franchisee?
Explain the advantages of franchising, both for the franchisor and franchisee.
Choose the Correct Answer.
A continuing relationship which provides licence privileges to do business and provides training, merchandising for consideration is called ______
State two disadvantages of franchising?
Assertion (A): In franchising there is usually a much higher likelihood of success when an individual opens a franchise as opposed to a mom-and-pop business.
Reason (R): It runs on a proven business formula that is already in place.
Franchising is advantageous for both franchisor and franchisee. Explain five advantages of franchising for the franchisee.
How is franchising a better option for external expansion in case of start-ups?
