FRANCHISING
FRANCHISING

Author(s): Mirela Alpeza
Subject(s): Economy, Business Economy / Management, Marketing / Advertising
Published by: Sveučilište Josipa Jurja Strossmayera u Osijeku, Ekonomski fakultet u Osijeku
Keywords: Eastern Europe; franchising; economy; marketing; brand; business model;
Summary/Abstract: Franchising is a business model in which a company (franchisor) sells the right to use its brand name and know-how to a person or group acting as franchisees, in accordance with a signed franchise agreement. This business model also includes the franchisor’s right to control business operations of the franchisee, and business development support provided by the franchisor to the franchisee. The franchisee agrees to pay (most often) the franchise fee when joining the franchise network, as well as royalties, usually monthly, for the use of the franchisor’s brand and business model (Boroian and Boroian, 1987: 4).

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