Gujarat BoardEnglish MediumSTD 11 CommerceOCMInternal Trade3 Marks
Question
Write Short Note on : Franchise
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Answer
When a special right is given by signing a contract with a businessman for selling or manufacturing its branded products under its own name, it is known as franchise.
The original company has given franchise right to the businessman and the shop of this business man is known as franchise shop.
The decoration of the shop, sign board, furniture, color are the same as the parent company.
Sometimes for manufacturing of product franchise is given.
In such cases raw-material is provided by parent company.
Constant supervision of the parent company provides guidance to maintain quality.
The parent company recovers royalty at the rate fixed in the contract against allowing to use its trade mark or brand.
Parent company imparts training to the employees of franchise receiver company.
Franchise receiver does have to spend for advertisement also.
Normally some centers such as $NUT, APTECH$, some restaurants like. Pizza Hut etc., provide products and services to customers.
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