Definition
A contractual agreement with a franchisor to which the franchisor permits the franchisee to use the franchisor’s business name and/or trademark, manufacture or sell the franchisor’s products or services
Franchisor and franchisee are not partners, employer and employee, or principal and agent, but separate contracting parties
Four types of franchising agreement
- Manufacturer-retailer
- Manufacturer-wholesaler
- Service sponsor-retailer
- Wholesaler-retailer
Franchise fees
Initial Franchise
The payment for establishing the relationship and providing services
Continuing Franchise
The payment received in return for the continuing rights such as management training, advertising and promotion, quality control, budgeting and others
Right to access vs Right to use
Methods of collecting
Reasonably Assured, Not Reasonably Assured & Uncertain
Josh 