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Franchise Organization Definition and Explanation PDF Download

Learn Franchise Organization definition in marketing with explanation to study “What is Franchise Organization”. Study franchise organization explanation with marketing terms to review marketing course for online MBA programs.

Franchise Organization Definition:

  • A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Franchise Organization Explanation:

Organization depends on an advertising idea which can be embraced by an association as a procedure for business development. Where actualized, a franchiser licenses its ability, methods, protected innovation, utilization of its plan of action, brand, and rights to offer its marked items and administrations to a franchisee. Consequently the franchisee pays certain expenses and consents to conform to specific commitments, ordinarily set out in a Franchise Agreement. "Franchise" is of Anglo-French inference - from franc, which means free - and is utilized both as a thing and as a (transitive) verb. For the franchiser, utilization of an establishment framework is an elective business development system, contrasted with extension through corporate claimed outlets or "chain stores". Receiving an establishment framework business development technique for the deal and appropriation of merchandise and enterprises limits the franchiser's capital venture and obligation chance.

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