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The word franchise is of Anglo-French derivation—from franc, meaning 'free'—and is used both as a noun and as a (transitive) verb. [2] For the franchisor, use of a franchise system is an alternative business growth strategy, compared to expansion through corporate owned outlets or "chain stores". Adopting a franchise system business growth ...
A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, ...
Distribution business models, various Fee in, free out Business model which works by charging the first client a fee for a service, while offering that service free of charge to subsequent clients. Franchise Franchising is the practice of using another firm's successful business model.
The Franchise Rule specifies what information a franchisor must disclose to a prospective franchise business as a franchise opportunity. [7] [8] Franchisors that practice franchise fraud will attempt to pressure a franchisee leaving the franchise system sign a non-disclosure agreement, confidentiality agreement, or a gag order. The gag order ...
Unfortunately, the Federal Trade Commission Rule and the State Franchise Disclosure Documents that govern the sale of franchises appear to enable franchisors to withhold negative facts concerning the performance of the franchised business plan from new buyers of franchises and to disclaim that the franchisors have promised anything in the way ...
A franchise agreement is a legal, binding contract between a franchisor and franchisee. In the United States franchise agreements are enforced at the State level. Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule . [ 1 ]
Microfranchising is a business model that applies elements and concepts of traditional franchising to small businesses in the developing world. It refers to the systemization and replication of micro-enterprises. Microfranchising is broadly defined as small businesses that can easily be replicated by following proven marketing and operational ...
The commission focuses much of its franchise rule enforcement and consumer educational resources on combating business opportunity fraud. The franchise rule requires franchisors to make material disclosures in five categories: the nature of the franchisor and the franchise system; the franchisor's financial viability
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