Franchising

The world of business and the provision of various products on the market accommodate the completion of many movements and actions of a financial nature, allowing the continued economic development of societies, a clear example of this diversity of modes of action the market is the presence of franchises, that through the expansion of products through a permit to use a trademark which already has a good reputation allows for entering the market in the best way to have an image which has gained ground. No doubt the franchises by the conditions presented in this figure are excellent economic development options, which offer advantages for the franchiser to the franchisee which undoubtedly makes this a very tempting option when looking for excellent through monetary investment. Given a figure as interesting as they are franchises, it is appropriate to know a little more content and options they offer.

Speaking of franchising is that referring to a type of contract or agreement that applied in the commercial field, where they act two parties and the owner of the business to another person gave him the right to use the trademark, besides the different components you need to know to perform certain products that are part of the secrets production, ie their know-how, all thanks to a financial reward that makes the purchaser of the franchise owner of the product and its trademark. This in more technical terms would be an agreement between a franchiser and a franchisee in which the former gave him the license to another action in a trademark, so the methods of doing business with branded products in exchange for a royalty. The franchise then assume that those who acquired the franchise may exploit the mark and replicate independently, ie production costs are on their own, so who gives or the franchiser has no more obligation to provide the license and instruct on the production processes, from there on, everything is paid by the franchisee.

Clearly franchises represent some great benefits and advantages for both parties, since the franchise through the franchiser or franchiser to further expand its business as a brand franchise with this in a country like USA can be placed on Spain’s market, which undoubtedly is a great benefit as it represents the internationalization of the brand, which allows for the consolidation and greater prestige of the brand, whereas for which the franchisee gets the great advantage of being developed in a business that is already positioned and has the success and acceptance by consumers, which makes the foray into this business much more profitable.