| Business franchising has a long history of successful | | | | origin of the word "franchise" includes the French |
| business companies expanding their businesses | | | | root words of "honesty", but it is difficult for the |
| through franchises. The earliest of franchising | | | | franchisor to take this for granted. Individual |
| ventures take us as long ago as the 1850s when | | | | franchising units may lead to problems of pricing and |
| Isaac Singer expanded his line of sewing machines. | | | | profitability concerns, as the rights allotted to the |
| Some of the veterans of business franchises that | | | | franchisee cannot always be regulated by the |
| need mention include Coca Cola which started | | | | franchisor. Adding to the equation of the franchisor |
| franchising at a time when no one else was doing it. | | | | and the franchisee are other issues of control, use of |
| The modern day franchising of food chains started in | | | | raw materials, shipping of materials and other regional |
| the USA with a company called A&W Root | | | | problems that crop up with the individual franchise |
| Beer, which started the trend of quick serving food | | | | unit. Legal terms are binding to the franchisee, and |
| stores, in the 1930s. Franchising includes business | | | | the violation of this result in the poor working of the |
| systems that involve a "franchisor" who sells a | | | | franchise system, which leads to the loss in money. |
| certain business rights to the "franchisee" who | | | | The legal aspects of business franchising are |
| purchases these rights in order to conduct the | | | | significant to the proper functioning of the franchise. |
| business that may include original terms of the | | | | The legalities of franchising include involving the |
| franchisor. | | | | franchisee and the franchisor in trust based |
| Franchising helps a business to achieve lateral growth, | | | | cooperation, and if this is tampered with, there is a |
| which means the increased sales of its products | | | | risk of hampering the business franchise. Several |
| through these various franchise outlets. The | | | | countries have individual franchise regulations and |
| advantages of business franchising are many, including | | | | rules which should be followed by all the legal |
| a quick launch pad to aspiring entrepreneurs, and | | | | business franchising units in the country. Recognized |
| growth of the parent company. Relatively less | | | | franchising units can only allowed to function if they |
| training and skill levels are required for the franchisee | | | | practice the norms that are laid out by the country. |
| in order to operate the business franchise, therefore, | | | | This is applicable to countries like India, and China, |
| the parent company ends up spending less time and | | | | where the governmental regulations are vital for the |
| money behind a single franchise outlet. Franchising | | | | franchising company. There are some countries which |
| leads to the expansion of the mother company, and | | | | do not have any such specific franchising laws, which |
| this is probably the biggest payoff to the same. | | | | include countries like the United Kingdom. |
| On the downside of franchising, there are concerns | | | | The world of business franchising has a lot to do with |
| for the parent company regarding the control and | | | | mutual cooperation between the franchisor and the |
| profit making of a single franchise unit. Epistemological | | | | franchisee, and this ensures profit for both. |