Practicing Success
Practicing Success
CUET Preparation Today
| August Ltd., a multinational restaurant chain company, gives an exclusive right to four Indian firms to set up the restaurants in metropolitan cities in India in return for their payment of royalties and conformance to standardized operating procedures. Indian companies decided to employ local workers and to distribute left-over food amongst the needy as a provision in the agreement with August Ltd. Identify and give the meaning of the concept discussed in the above para. |
Franchising Merger Acquisition Consolidation |
| Franchising |
| Franchising is as "an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in return for their payment of royalties and conformance to standardized operating procedures". The person offering the franchise is known as the franchisor. The franchisee is the person who purchases the franchise and is given the opportunity to enter a new business with a better chance to success than if he or she were to start a new business from scratch. Foundation of this relationship is the Franchise Agreement. |
