What is franchising?
Q: What is franchising?
A: Franchising is a business method that involves the licensing of trademarks and methods of doing business.
Q: What are chain stores?
A: Chain stores are retail outlets which share a brand and central management, but also an exclusive right to sell branded merchandise.
Q: Does franchising only occur in retail outlets?
A: No, franchising can also occur in media franchises, where there is ownership of characters and settings of movies, video games, books or toys, particularly in North American usage.
Q: Can you give an example of a media franchise?
A: Examples of media franchises include Pokémon, Harry Potter or Barbie.
Q: What is the benefit of franchising for the franchisee?
A: The benefit of franchising for the franchisee is that they can use an established brand, have access to a proven business model, and receive ongoing support and training from the franchisor.
Q: What is the benefit of franchising for the franchisor?
A: The benefit of franchising for the franchisor is that they can expand their business quickly without the need for huge amounts of capital and can generate revenue from franchise fees and royalties.
Q: Is franchising a good option for all types of businesses?
A: No, franchising may not be a good option for all types of businesses as it requires a proven business model, strong brand, and ongoing support and training to be successful.
