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MM. Verónica Bolaños López
FRANCHISES
Definition
Franchising is a form of marketing and distribution in
which the owner of a business system (the franchisor)
grants to an individual or group of individuals (the
franchisee) the right to run a business selling a
product or providing a service using the
franchisor's business system.
Source: https://www.franchisedirect.com/what-is-franchising-definition/
FRANCHISE AGREEMENT
FRANCHISOR FRANCHISEE
Owns trademark or trade name
Provides support:
• (sometimes) financig
• Advertising & marketing
• Training
Uses tradmark or trade name
Expands business with franchisor’s support
Recieves fees Pays fees
Source: An introduction so franchising,
https://unstats.un.org/unsd/nationalaccount/workshops/2008/newyork/ig27.pdf
The franchise is a top management strategy with three main objectives:
Ø Rapid growth
Ø Domination of markets
Ø Brand building
There are two main types of franchises
Product distribution Business format
https://franquicia.org.mx/
Franchise catalog in Mexico
https://www.rankia.mx/blog/mejores-opiniones-
mexico/3344790-franquicias-mexico-baratas-exitosas
https://www.raconteur.net/top-10-
largest-franchises-in-the-
world/?platform=hootsuite
Thank you

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