Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods and avoid investment and liability over a chain. The franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

However, except in the US, and now in China (2007) where there are explicit Federal (and in the US, State) laws covering franchise, most of the world recognizes 'franchise' but rarely makes legal provisions for it. Only Australia, various provinces within Canada, France and Brazil have significant Disclosure laws but Brazil regulates franchises more closely.

Where there is no specific law, franchise is considered a distribution system, whose laws apply, with the trademark (of the franchise system) covered by specific covenants.

 


 




 







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  • Asia-Pacific Centre for Franchising Excellence

    The Asia-Pacific Centre for Franchising Excellence builds on the Griffith Business School’s reputation as a leader in franchise research and franchise education. The Centre addresses the need for dedicated research, education and an ongoing focus on the franchise sector.

  • American Association of Franchisees & Dealers

    The AAFD is a national non-profit trade association representing the rights and interests of franchisees and independent dealers throughout the United States. The AAFD was formed by Declaration of Trust in May of 1992 with the original mission of "Bringing Fairness to Franchising." As the AAFD has expanded and evolved, and as many fine franchising companies have stepped forward to contractually embrace the promise of Win-Win Franchising, the AAFD's mission has expanded, but can be succinctly stated as follows:

    To define, identify and to use marketplace solutions to promote Total Quality Franchising.

  • Franchise Council of Australia

    The Franchise Council of Australia Limited (FCA) is the peak body for the $128 billion franchise sector in Australia, representing franchisees, franchisors and service providers to the sector.

  • Canadian Franchise Association

    With almost 500 corporate members nation-wide, representing many of Canada's best-known brands, the Canadian Franchise Association is the national voice of franchising in Canada and works with all levels of government to develop industry-made solutions. CFA promotes excellence in franchising and educates Canadians about franchising, specific franchise opportunities and proper due diligence through its many events, programs and publications.

  • Canadian Franchise Association

    With almost 500 corporate members nation-wide, representing many of Canada's best-known brands, the Canadian Franchise Association is the national voice of franchising in Canada and works with all levels of government to develop industry-made solutions. CFA promotes excellence in franchising and educates Canadians about franchising, specific franchise opportunities and proper due diligence through its many events, programs and publications.

  • Franchising Association of India

    Franchising Association of India (FAI) is focused on promoting the concept of Franchising in India and on bringing in best international practices. By virtue of our membership of the prestigious World Franchise Council (WFC) we are connected with 46 similar associations of other World Franchise council member countries including International Franchising Association, US. As a part of the constitution World Franchise Council acknowledges and admits only one member association per country.

  • Franchise Brokers Association

    The FBA is an association dedicated to helping Franchise Brokers and Consultants build thriving practices. As the hub of the franchise community, the FBA sets the standard for the exchange of information among consultants, franchisors, funding sources and other essential resources so the clients of our community are served with the highest level of integrity and professionalism.

  • International Franchise Association

    Celebrating 50 years of excellence, education and advocacy, the International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. IFA’s mission is to protect, enhance and promote franchising through government relations, public relations and educational programs.





 
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