Franchising - Wikipedia

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor ... Franchising FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch Practiceoftherighttouseafirm'sbusinessmodelandbrandforaprescribedperiodoftime Thisarticleisaboutthebusinessconcept.Forotheruses,seeFranchise. Thisarticlehasmultipleissues.Pleasehelpimproveitordiscusstheseissuesonthetalkpage.(Learnhowandwhentoremovethesetemplatemessages) Thisarticleneedsadditionalcitationsforverification.Pleasehelpimprovethisarticlebyaddingcitationstoreliablesources.Unsourcedmaterialmaybechallengedandremoved.Findsources: "Franchising" – news ·newspapers ·books ·scholar ·JSTOR(December2021)(Learnhowandwhentoremovethistemplatemessage) Thisarticlepossiblycontainsoriginalresearch.Pleaseimproveitbyverifyingtheclaimsmadeandaddinginlinecitations.Statementsconsistingonlyoforiginalresearchshouldberemoved.(December2021)(Learnhowandwhentoremovethistemplatemessage) (Learnhowandwhentoremovethistemplatemessage) AMcDonald'sfranchiseinMoncton,NewBrunswick,Canada Franchisingisbasedonamarketingconceptwhichcanbeadoptedbyanorganizationasastrategyforbusinessexpansion.Whereimplemented,afranchisorlicensessomeorallofitsknow-how,procedures,intellectualproperty,useofitsbusinessmodel,brand,andrightstosellitsbrandedproductsandservicestoafranchisee.Inreturn,thefranchiseepayscertainfeesandagreestocomplywithcertainobligations,typicallysetoutinafranchiseagreement. Theword"franchise"isofAnglo-Frenchderivation—fromfranc,meaningfree—andisusedbothasanounandasa(transitive)verb.[1] Forthefranchisor,useofafranchisesystemisanalternativebusinessgrowthstrategy,comparedtoexpansionthroughcorporateownedoutletsor"chainstores".Adoptingafranchisesystembusinessgrowthstrategyforthesaleanddistributionofgoodsandservicesminimizesthefranchisor'scapitalinvestmentandliabilityrisk. Franchisingisrarelyanequalpartnership,especiallyinthetypicalarrangementwherethefranchiseeisanindividual,unincorporatedpartnershiporsmallprivately-heldcorporation,asthiswillensurethefranchisorhassubstantiallegaland/oreconomicadvantagesoverthefranchisee.Theusualexceptiontothisruleiswhentheprospectivefranchiseeisalsoapowerfulcorporateentitycontrollingahighlylucrativelocationand/orcaptivemarket(forexample,alargesportsstadium)inwhichprospectivefranchisorsmustthencompetetoexcludeoneanotherfrom.However,underspecificcircumstancesliketransparency,favourablelegalconditions,financialmeansandpropermarketresearch,franchisingcanbeavehicleofsuccessforbothalargefranchisorandasmallfranchisee. Thirty-sixcountrieshavelawsthatexplicitlyregulatefranchising,withthemajorityofallothercountrieshavinglawswhichhaveadirectorindirecteffectonfranchising.[2] Franchisingisalsousedasaforeignmarketentrymode. Contents 1History 2Feesandcontractarrangement 3Rationaleandriskshift 4Advantagesanddisadvantagesoffranchisingasanentrymode 5Obligationsoftheparties 6Regulations 6.1Australia 6.1.1Franchisingcodeofconduct 6.2NewZealand 6.3Brazil 6.4Canada 6.5China 6.6India 6.7Kazakhstan 6.8Europe 6.8.1France 6.8.2Italy 6.8.3Norway 6.8.4Russia 6.8.5Spain 6.8.6Turkey 6.8.7UnitedKingdom 6.9UnitedStates 7Socialfranchises 8Third-partylogisticsfranchising 9Eventfranchising 10Home-basedfranchises 11Seealso 12Furtherreading 13References 14Externallinks History[edit] TheboominfranchisingdidnottakeplaceuntilafterWorldWarII.Nevertheless,therudimentsofmodernfranchisingdatebacktotheMiddleAgeswhenlandownersmadefranchise-likeagreementswithtaxcollectors,whoretainedapercentageofthemoneytheycollectedandturnedtherestover.[3]Thepracticeendedaround1562butspreadtootherendeavors.[4]Forexample,in17thcenturyEnglandfranchiseesweregrantedtherighttosponsormarketsandfairsoroperateferries.Therewaslittlegrowthinfranchising,though,untilthemid-19thcentury,whenitappearedintheUnitedStatesforthefirsttime. OneofthefirstsuccessfulAmericanfranchisingoperationswasstartedbyanenterprisingdruggistnamedJohnS.Pemberton.In1886,heconcoctedabeveragecomprisingsugar,molasses,spices,andcocaine.Pembertonlicensedselectedpeopletobottleandsellthedrink,whichwasanearlyversionofwhatisnowknownasCoca-Cola.Hiswasoneoftheearliest—andmostsuccessful—franchisingoperationsintheUnitedStates. TheSingerCompanyimplementedafranchisingplaninthe1850stodistributeitssewingmachines.Theoperationfailed,though,becausethecompanydidnotearnmuchmoneyeventhoughthemachinessoldwell.Thedealers,whohadexclusiverightstotheirterritories,absorbedmostoftheprofitsbecauseofdeepdiscounts.SomefailedtopushSingerproducts,socompetitorswereabletooutsellthecompany.Undertheexistingcontract,Singercouldneitherwithdrawrightsgrantedtofranchiseesnorsendinitsownsalariedrepresentatives.So,thecompanystartedrepurchasingtherightsithadsold.Theexperimentprovedtobeafailure.Thatmayhavebeenoneofthefirsttimesafranchisorfailed,butitwasbynomeansthelast.(EvenColonelSandersdidnotinitiallysucceedinhisKentuckyFriedChickenfranchisingefforts.)Still,theSingerventuredidnotputanendtofranchising. OthercompaniestriedfranchisinginoneformoranotheraftertheSingerexperience.Forexample,severaldecadeslater,GeneralMotorsCorporationestablishedasomewhatsuccessfulfranchisingoperationinordertoraisecapital.Perhapsthefatherofmodernfranchising,though,isLouisK.Liggett.In1902,Liggettinvitedagroupofdruggiststojoina"drugcooperative."Asheexplainedtothem,theycouldincreaseprofitsbypayinglessfortheirpurchases,especiallyiftheysetuptheirownmanufacturingcompany.Hisideawastomarketprivatelabelproducts.About40druggistspooled$4,000oftheirownmoneyandadoptedthename"Rexall".Salessoared,andRexallbecameafranchisor.Thechain'ssuccesssetapatternforotherfranchisorstofollow. Althoughmanybusinessownersdidaffiliatewithcooperativeventuresofonetypeoranother,therewaslittlegrowthinfranchisinguntiltheearly20thcentury,andinwhateverformfranchisingexisted,itlookednothinglikewhatitistoday.AstheUnitedStatesshiftedfromanagriculturaltoanindustrialeconomy,manufacturerslicensedindividualstosellautomobiles,trucks,gasoline,beverages,andavarietyofotherproducts.Thefranchiseesdidlittlemorethansellingtheproducts,though.Thesharingofresponsibilityassociatedwithcontemporaryfranchisingarrangementdidnotexisttoagreatextent.Consequently,franchisingwasnotagrowthindustryintheUnitedStates. Itwasnotuntilthe1960sand1970sthatpeoplebegantotakeacloselookattheattractivenessoffranchising.Theconceptintriguedpeoplewithentrepreneurialspirit.However,therewereseriouspitfallsforinvestors,whichalmostendedthepracticebeforeitbecametrulypopular. APizzaHutfranchise TheUnitedStatesisaleaderinfranchising,apositionithasheldsincethe1930swhenitusedtheapproachforfast-foodrestaurants,foodinnsand,slightlylater,motelsatthetimeoftheGreatDepression.[5][6]Asof2005,therewere909,253establishedfranchisedbusinesses,generating$880.9billionofoutputandaccountingfor8.1percentofallprivate,non-farmjobs.Thisamountsto11millionjobs,and4.4percentofallprivatesectoroutput.[7] Mid-sizedfranchiseslikerestaurants,gasolinestationsandtruckingstationsinvolvesubstantialinvestmentandrequirealltheattentionofabusinessperson. Therearealsolargefranchiseslikehotels,spasandhospitals,whicharediscussedfurtherundertechnologicalalliances. "Nopoaching"agreementsareprevalentwithinfranchises,thuslimitingtheabilityofemployersatonefranchiseestablishmenttohireemployeesatanaffiliatedfranchise.Economistshavecharacterizedtheseagreementsasacontributortooligopsony.[8] Feesandcontractarrangement[edit] Threeimportantpaymentsaremadetoafranchisor:(a)aroyaltyforthetrademark,(b)reimbursementforthetrainingandadvisoryservicesgiventothefranchisee,and(c)apercentageoftheindividualbusinessunit'ssales.Thesethreefeesmaybecombinedinasingle'management'fee.Afeefor"disclosure"isseparateandisalwaysa"front-endfee". Afranchiseusuallylastsforafixedtimeperiod(brokendownintoshorterperiods,whicheachrequirerenewal),andservesaspecificterritoryorgeographicalareasurroundingitslocation.Onefranchiseemaymanageseveralsuchlocations.Agreementstypicallylastfromfivetothirtyyears,withprematurecancellationsorterminationsofmostcontractsbearingseriousconsequencesforfranchisees.Afranchiseismerelyatemporarybusinessinvestmentinvolvingrentingorleasinganopportunity,notthepurchaseofabusinessforthepurposeofownership.Itisclassifiedasawastingassetduetothefinitetermofthelicense. Franchisefeesareonaverage6.7%withanadditionalaveragemarketingfeeof2%.[9]However,notallfranchiseopportunitiesarethesameandmanyfranchiseorganizationsarepioneeringnewmodelsthatchallengeantiquatedstructuresandredefinesuccessfortheorganizationaswellasthefranchisee. Afranchisecanbeexclusive,non-exclusiveor"soleandexclusive". Althoughfranchisorrevenuesandprofitmaybelistedinafranchisedisclosuredocument(FDD),nolawsrequireanestimateoffranchiseeprofitability,whichdependsonhowintensivelythefranchisee"works"thefranchise.Therefore,franchisorfeesaretypicallybasedon"grossrevenuefromsales"andnotonprofitsrealized.Seeremuneration. Varioustangiblesandintangiblessuchasnationalorinternationaladvertising,trainingandothersupportservicesarecommonlymadeavailablebythefranchisor. Franchisebrokershelpfranchisorsfindappropriatefranchisees.[10]Therearealsomain'masterfranchisors'whoobtaintherightstosub-franchiseinaterritory. AccordingtotheInternationalFranchiseAssociationapproximately44%ofallbusinessesintheUnitedStatesarefranchisee-worked. Rationaleandriskshift[edit] Franchisingisoneofthefewmeansavailabletoaccessventurecapitalwithouttheneedtogiveupcontroloftheoperationofthechainandbuildadistributionsystemforservicingit.Afterthebrandandformulaarecarefullydesignedandproperlyexecuted,franchisorsareabletosellfranchisesandexpandrapidlyacrosscountriesandcontinentsusingthecapitalandresourcesoftheirfranchiseeswhilereducingtheirownrisk. Thereisalsoriskforthepeoplebuyingthefranchises.However,failureratesaremuchlowerforfranchisebusinessesthanindependentbusinessstartups.[11] Franchisorrulesimposedbythefranchisingauthorityarebecomingincreasinglystrict.Somefranchisorsareusingminorruleviolationstoterminatecontractsandseizethefranchisewithoutanyreimbursement.[12] Advantagesanddisadvantagesoffranchisingasanentrymode[edit] Franchisingbringswithitseveraladvantagesanddisadvantagesforfirmslookingtoexpandintonewareasandforeignmarkets.Theprimaryadvantageisthatthefirmdoesnothavetobearthedevelopmentcostandrisksofopeningaforeignmarketonitsown,asthefranchiseeistypicallyresponsibleforthosecostsandrisks,puttingtheonusonthemtobuildaprofitableoperationasquicklyaspossible.[13]Throughfranchising,afirmhasthepotentialofbuildingaglobalpresencequicklyandalsoatalowcostandrisk.[13] Forthefranchisee,theprimaryadvantagesareaccesstoawell-knownbrand,supportinsettingupthebusinessusingoperatingmanuals,andongoingoperationalsupportincludingaccesstosuppliersandemployeetraining.[14] Aprimarydisadvantagetofranchisingisqualitycontrol,asthefranchisorwantsthefirm'sbrandnametoconveyamessagetoconsumersaboutthequalityandconsistencyofthefirm'sproduct.[13]Theywanttheconsumertoexperiencethesamequalityregardlessoflocationorfranchisestatus.[13]Thiscanprovetobeanissuewithfranchising,asacustomerwhohadabadexperienceatonefranchisemayassumethattheywillhavethesameexperienceatotherlocationswithotherservices.Distancecanmakeitdifficultforfirmstodetectwhetherornotthefranchisesareofpoorquality.[13]Onewayaroundthisdisadvantageistosetupextrasubsidiariesineachcountryorstateinwhichthefirmexpands.Thiscreatesasmallernumberoffranchiseestooversee,whichwillreducethequalitycontrolchallenges.[13] Obligationsoftheparties[edit] Eachpartytoafranchisehasseveralintereststoprotect.Thefranchisorisinvolvedinsecuringprotectionforthetrademark,controllingthebusinessconceptandsecuringknow-how.Thefranchiseeisobligatedtocarryouttheservicesforwhichthetrademarkhasbeenmadeprominentorfamous.Thereisagreatdealofstandardizationrequired.Theplaceofservicehastobearthefranchisor'ssigns,logosandtrademarkinaprominentplace.Theuniformswornbythestaffofthefranchiseehavetobeofaparticulardesignandcolor.Theservicehastobeinaccordancewiththepatternfollowedbythefranchisorinthesuccessfulfranchiseoperations.Thus,franchiseesarenotinfullcontrolofthebusiness,astheywouldbeinretailing. Aservicecanbesuccessfulifequipmentandsuppliesarepurchasedatafairpricefromthefranchisororsourcesrecommendedbythefranchisor.Acoffeebrew,forexample,canbereadilyidentifiedbythetrademarkifitsrawmaterialscomefromaparticularsupplier.Ifthefranchisorrequirespurchasefromherstores,itmaycomeunderanti-trustlegislationorequivalentlawsofothercountries.[15]Sotoothepurchasethingslikeuniformsofpersonnelandsigns,aswellasthefranchisesites,iftheyareownedorcontrolledbythefranchisor. Thefranchiseemustcarefullynegotiatethelicenseandmustdevelopamarketingorbusinessplanwiththefranchisor.Thefeesmustbefullydisclosedandthereshouldnotbeanyhiddenfees.Thestart-upcostsandworkingcapitalmustbeknownbeforethelicenseisgranted.Theremustbeassurancethatadditionallicenseeswillnotcrowdthe"territory"ifthefranchiseisworkedaccordingtoplan.Thefranchiseemustbeseenasanindependentmerchant.Itmustbeprotectedbythefranchisorfromanytrademarkinfringementbythirdparties.Afranchiseattorneyisrequiredtoassistthefranchiseeduringnegotiations.[16] Oftenthetrainingperiod–thecostsofwhichareingreatpartcoveredbytheinitialfee–istooshortincaseswhereitisnecessarytooperatecomplicatedequipment,andthefranchiseehastolearnontheirownfrominstructionmanuals.Thetrainingperiodmustbeadequate,butinlow-costfranchisesitmaybeconsideredexpensive.Manyfranchisorshavesetupcorporateuniversitiestotrainstaffonline.Thisisinadditiontoprovidingliterature,salesdocumentsandemailaccess. Also,franchiseagreementscarrynoguaranteesorwarrantiesandthefranchiseehaslittleornorecoursetolegalinterventionintheeventofadispute.[17]Franchisecontractstendtobeunilateralandfavorofthefranchisor,whoisgenerallyprotectedfromlawsuitsfromtheirfranchiseesbecauseofthenon-negotiablecontractsthatfranchiseesarerequiredtoacknowledge,ineffect,thattheyarebuyingthefranchiseknowingthatthereisrisk,andthattheyhavenotbeenpromisedsuccessorprofitsbythefranchisor.Contractsarerenewableatthesoleoptionofthefranchisor.Mostfranchisorsrequirefranchiseestosignagreementsthatmandatewhereandunderwhatlawanydisputewouldbelitigated. Regulations[edit] Australia[edit] In2016therewereanestimated1,120franchisebrandsoperatinginAustraliaandanestimated79,000unitsoperatinginbusinessformatfranchises,withatotalbrandturnoverofapproximately$146billionandasalesrevenueofapproximately$66.5billion.[18]In2016themajorityoffranchisebrandswereretailerswiththelargestsegmentbeingnon-foodretailing,accountingfor26percentofbrands,afurther19percentofbrandswereinvolvedinfoodretailing,15percentoffranchisorsoperatedinadministrationandsupportservices,10percentinotherservices,7percentineducationandtrainingand7percentinrental,hireandrealestateservices.[18] FranchisinginAustraliacommencedinasignificantwayintheearly1970sundertheinfluenceofthefranchisedUSfastfoodsystemssuchasKFC,PizzaHut,andMcDonald's.[19]Itwashoweverunderwaypriortothisandadecadeearlierin1960LeslieJosephHooker,consideredapioneeroffranchising,createdAustralia'sfirstnationalrealestateagencynetworkofHookerrealestateagencies.[20][21] InAustralia,franchisingisregulatedbytheFranchisingCodeofConduct,amandatorycodeofconductconcludedundertheTradePracticesAct1974.[22] TheACCCregulatestheFranchisingCodeofConduct,whichisamandatoryindustrycodethatappliestothepartiestoafranchiseagreement.[23] Thiscoderequiresfranchisorstoproduceadisclosuredocumentwhichmustbegiventoaprospectivefranchiseeatleast14daysbeforethefranchiseagreementisenteredinto. Thecodealsoregulatesthecontentoffranchiseagreements,forexampleinrelationtomarketingfunds,acooling-offperiod,termination,andtheresolutionofdisputesbymediation. Franchisingcodeofconduct[edit] On1January2015,theoldFranchisingCodewasrepealedandreplacedwithanewFranchisingCodeofConduct.ThenewCodeappliestoconductonorafter1January2015. ThenewCode: introducesanobligationundertheCodeforpartiestoactingoodfaithintheirdealingswithoneanother introducesfinancialpenaltiesandinfringementnoticesforseriousbreachesoftheCode requiresfranchisorstoprovideprospectivefranchiseeswithashortinformationsheetoutliningtherisksandrewardsoffranchising requiresfranchisorstoprovidegreatertransparencyintheuseofandaccountingformoneyusedformarketingandadvertisingandtosetupaseparatemarketingfundformarketingandadvertisingfees requiresadditionaldisclosureabouttheabilityofthefranchisorandafranchiseetosellonline prohibitsfranchisorsfromimposingsignificantcapitalexpenditureexceptinlimitedcircumstances. Thesearesignificantchangesanditisimportantthatfranchisors,franchiseesandpotentialfranchisesunderstandtheirrightsandresponsibilitiesundertheCode. ForfurtherinformationaboutthechangestotheCode,pleaseseetheupdatedFranchisorComplianceManualandtheFranchiseeManual. TheCodeexplanatorymaterialsareavailablefromtheComLawwebsite(linkisexternal).[24] NewZealand[edit] NewZealandisservedbyaround423franchisesystemsoperating450brands,givingitthehighestproportionoffranchisespercapitaintheworld.Despite(orbecauseof)the2008-09recession,thetotalnumberoffranchisedunitsincreasedby5.3%from2009to2010.[25]Thereisnoseparatelawcoveringfranchises,sotheyarecoveredbynormalcommerciallaw.ThisfunctionsverywellinNewZealandandincludeslawasitappliestocontracts,restrictivetradepractices,intellectualproperty,andthelawofmisleadingordeceptiveconduct.[26] TheFranchiseAssociationofNewZealandintroducedaself-regulatorycodeofpracticeforitsmembersin1996.ThiscontainsmanyprovisionssimilartothoseoftheAustralianFranchisingCodeofPracticelegislation,althoughonlyaroundathirdofallfranchisesaremembersoftheassociationandthereforeboundbythecode.[27] Acaseoffraudin2007perpetratedbyaformermasterfranchiseeofthecountry'slargestfranchisesystem[28]ledtoareviewoftheneedforfranchiselawbytheMinistryofEconomicDevelopment.[29]TheNewZealandGovernmentdecidedtherewasnocaseforfranchise-specificlegislationatthattime.[30]Thisdecisionwascriticisedbytheopposition,[31]whichhadinitiatedthereviewwheninpower,andthereviewprocesswasquestionedbyaleadingacademic.[32]TheFranchiseAssociationoriginallysupportedthepositiveregulationofthefranchisesector[33]butitseventualsubmissiontothereviewwasinfavourofthestatusquoofself-regulation.[34] Brazil[edit] Bytheendof2012,about2,031franchisebrandswereoperatinginBrazil,withapproximately93,000locations,[35]makingitoneofthelargestcountriesintheworldintermsofnumberofunits.Around11percentofthistotalwereforeign-basedfranchisors. TheBrazilianFranchiseLaw(LawNo.8955ofDecember15,1994)definesthefranchiseasasysteminwhichthefranchisorlicensesthefranchisee,forapayment,therighttouseatrademarkorpatentalongwiththerighttodistributeproductsorservicesonanexclusiveorsemi-exclusivebasis. Theprovisionofa"FranchiseOfferCircular",ordisclosuredocument,ismandatorybeforeexecutionofagreementandisvalidforalloftheBrazilianterritory.Failuretodisclosevoidstheagreement,whichleadstorefundsandseriouspaymentsfordamages.TheFranchiseLawdoesnotdistinguishbetweenBrazilianandforeignfranchisors.TheNationalInstituteofIndustrialProperty(INPI)istheregisteringauthority.IndispensabledocumentsareaStatementofDelivery(ofdisclosuredocumentation)andaCertificationofRecording(INPI).Thelatterisnecessaryforpayments.Allsumsmaynotbeconvertibleintoforeigncurrency.CertificationmayalsomeancompliancewithBrazil'santitrustlegislation. PartiestointernationalfranchisingmaydecidetoadopttheEnglishlanguageforthedocument,aslongastheBrazilianpartyknowsEnglishfluentlyandexpresslyacknowledgesthatfact,toavoidtranslation.Theregistrationaccomplishesthreethings: *Itmaketheagreementeffectiveagainstthirdparties *Itpermitstheremittanceofpayments *Itqualifiesthefranchiseefortaxdeductions. Canada[edit] InCanada,recentlegislationhasmandatedbetterdisclosureandfairtreatmentoffranchisees.Theregulationsalsoensuretheirrighttoformassociationsandlaunchcollectiveaction,eveniftheysignedcontractsprohibitingsuchmoves.FranchisinginCanadainvolves1,300brands,80,000franchiseunitsaccountingforabout20%ofallconsumerspending.[36] China[edit] Chinahasthemostfranchisesintheworldbutthescaleoftheiroperationsisrelativelysmall.TheaveragefranchisesysteminChinahasabout45outlets,comparedtomorethan540intheUnitedStates.Together,thereare2600brandsinsome200,000retailmarkets[clarificationneeded].KFCwasthemostsignificantforeignentryin1987andiswidespread.[37]Manyfranchisesareinfactjoint-ventures,asattheirformingthefranchiselawwasnotexplicit.Forexample,McDonald'sisajointventure.PizzaHut,TGIF,Wal-mart,Starbucksfollowednotlongthereafter.Buttotalfranchisingisonly3%ofretailtrade,whichseeksforeignfranchisegrowth. Theyear2005sawthebirthofanupdatedfranchiselaw,[37]"MeasuresfortheAdministrationofCommercialFranchise".[38]Previouslegislation(1997)madenospecificinclusionofforeigninvestors.Furtherupdatesweremadein2007,withtheobjectiveofincreasedclarityofthelaw.[citationneeded] Thelawsareapplicableiftherearetransactionsinvolvingatrademarkcombinedwithpaymentswithmanyobligationsonthefranchisor.Thelawcomprises42articlesandeightchapters. Amongthefranchisorobligationsare: TheFIE(foreign-investedenterprise)franchisormustberegisteredbytheregulator Thefranchisor(oritssubsidiary)musthaveoperatedatleasttwocompany-ownedfranchisesinChina(revisedto"anywhere")formorethan12months("thetwo-shop,one-year"rule) Thefranchisormustdiscloseanyinformationrequestedbythefranchisee Cross-borderfranchising,withsomecaveats,ispossible(2007law). Thefranchisormustmeetalistofrequirementsforregistration,amongwhichare: Thestandardfranchiseagreement,workingmanualandworkingcapitalrequirements, Atrack-recordofoperations,andampleabilitytosupplymaterials, TheabilitytotraintheChinesepersonnelandprovidelong-termoperationalguidance, Thefranchiseagreementmusthaveaminimumthree-yearterm. Amongotherprovisions: Thefranchisorisliableforcertainactionsofitssuppliers Monetaryandotherpenaltiesapplyforinfractionsoftheregulations. Thedisclosuremusttakeplace20daysinadvance.Ithastocontain: Detailsofthefranchisor'sexperienceinthefranchisedbusinesswithscopeofbusiness Identificationofthefranchisor'sprincipalofficers Litigationofthefranchisorduringthepastfiveyears Fulldetailsaboutallfranchisefees Theamountofafranchisee'sinitialinvestment Alistofthegoodsorservicesthefranchisorcansupply,andthetermsofsupply Thetrainingfranchiseeswillreceive Informationaboutthetrademarks,includingregistration,usageandlitigation Demonstrationofthefranchisor'scapabilitiestoprovidetrainingandguidance Statisticsaboutexistingunits,includingnumber,locationsandoperationalresults,andthepercentageoffranchisesthathavebeenterminated,and Anauditedfinancialreportandtaxinformation(foranunspecifiedperiodoftime). Otherelementsofthislegislationare: Thefranchisee'sconfidentialityobligationscontinueindefinitelyafterterminationorexpirationofthefranchiseagreement Ifthefranchiseehaspaidadeposittothefranchisor,itmustberefundedonterminationofthefranchiseagreement;upontermination,thefranchiseeisprohibitedfromcontinuingtousethefranchisor'smarks. India[edit] ThefranchisingofforeigngoodsandservicestoIndiaisinitsinfancy.ThefirstInternationalExhibitionwasonlyheldin2009.[39]Indiais,however,oneofthebiggestfranchisingmarketsbecauseofitslargemiddle-classof300millionwhoarenotreticentaboutspendingandbecausethepopulationisentrepreneurialincharacter.Inahighlydiversifiedsociety,(seeDemographicsofIndia)McDonald'sisasuccessstorydespiteitsmenudifferingfromthatoftherestoftheworld.[40] Sofar,franchiseagreementsarecoveredundertwostandardcommerciallaws:theContractAct1872andtheSpecificReliefAct1963,whichprovideforbothspecificenforcementofcovenantsinacontractandremediesintheformofdamagesforbreachofcontract. Kazakhstan[edit] InKazakhstanfranchiseturnoverfor2013is2.5billionUS$dollarsperyear.KazakhstanistheleaderinCentralAsiainthefranchisingmarket.Aspeciallawonfranchisingcameintoeffectin2002.Therearemorethan300franchisesystemsandthenumberoffranchisedoutletsapproaches2000.[41]Kazakhstanfranchisingbeganwiththeemergenceofa"Coca-Cola"factory,openedtosublicenseaTurkishlicensorofthesamebrand.Theplantwasbuiltin1994.OtherbrandsthatarealsopresentinKazakhstanthroughthefranchisesystemincludePepsi,Hilton,Marriott,Intercontinental,andPizzaHut. Europe[edit] FranchisinghasgrownrapidlyinEuropeinrecentyears,buttheindustryislargelyunregulated.TheEuropeanUnionhasnotadoptedauniformfranchiselaw.[42]Onlysixofthe27memberstateshaveapre-contractdisclosurelaw.TheyareFrance(1989),Spain(1996),Romania(1997),Italy(2004)Sweden(2004)andBelgium(2005).[43]EstoniaandLithuaniahavefranchiselawsthatimposemandatorytermsonfranchiseagreements.InSpainthereisalsomandatoryregistrationonapublicregistry.Althoughtheyhavenofranchisespecificlaws,GermanyandthosecountrieswithalegalsystembaseduponthatofGermany,suchasAustria,GreeceandPortugal,probablyimposethegreatestregulatoryburdenonfranchisorsduetotheirtendencytotreatfranchiseesasquasiconsumersincertaincircumstancesandthewillingnessofthejudiciarytousetheconceptofgoodfaithtomakepro-franchiseedecisions.IntheUK,therecent[when?]PapaJohncaseshowsthatthereisalsoaneedforpre-contractualdisclosureandtheYamSengcaseshowsthatthereisadutyofgoodfaithinfranchiserelationships. TheEuropeanFranchisingFederation'sCodeofEthicshasbeenadoptedbyseventeennationalfranchiseassociations.Howeverthishasnolegalforceandenforcementbythenationalassociationsisneitheruniformofrigorous.CommentatorslikeDrMarkAbell,inhisbook"TheLawandRegulationofFranchisingintheEU"(publishedin2013byEdwardElgarISBN 9781781952207)considerthislackofuniformitytobeoneofthegreatestbarrierstofranchisingrealisingitspotentialintheEU. WhenadoptingaEuropeanstrategy,itisimportantthatafranchisortakesexpertlegaladvice.MostoftenoneoftheprincipaltasksinEuropeistofindretailspace,whichisnotsosignificantafactorintheUSA.Thisiswherethefranchisebroker,orthemasterfranchisor,playsanimportantrole.Culturalfactorsarealsorelevant,aslocalpopulationstendtobeheterogeneous. France[edit] FranceisoneofEurope'slargestmarkets.SimilartotheUnitedStates,ithasalonghistoryoffranchising,datingbacktothe1930s.Growthcameinthe1970s.Themarketisconsidereddifficultforoutsidefranchisorsbecauseofculturalcharacteristics,yetMcDonald'sandCentury21arefoundeverywhere.Therearesome30U.S.firmsinvolvedinfranchisinginFrance.[44] Therearenogovernmentagenciesregulatingfranchises.TheLoiDoubinLawof1989wasthefirstEuropeanfranchisedisclosurelaw.CombinedwithDecreeNo.91-337,itregulatesdisclosure,althoughthedecreealsoappliestoanypersonwhoprovidestoanotherpersonacorporatename,trademarkortradenameorotherbusinessarrangements.Thelawappliesto"exclusiveorquasi-exclusiveterritory".Thedisclosuredocumentmustbedeliveredatleast20daysbeforetheexecutionoftheagreementoranypaymentsaremade. Thespecificandimportantdisclosurestobemadeare:[45] Thedateofthefoundingofthefranchisor'senterpriseandasummaryofitsbusinesshistoryandallinformationnecessarytoassessthebusinessexperienceofthefranchisor,includingbankers, Adescriptionofthelocalmarketforthegoodsorservices, Thefranchisor'sfinancialstatementsfortheprevioustwoyears, Alistofallotherfranchiseescurrentlyinthenetwork, Allfranchiseeswhohaveleftthenetworkduringtheprecedingyear,whetherbyterminationornon-renewal,and Theconditionsforrenewal,assignment,terminationandthescopeofexclusivity. Initially,therewassomeuncertaintywhetheranybreachoftheprovisionsoftheDoubinLawwouldenablethefranchiseetowalkawayfromthecontract. However,theFrenchsupremecourt(Courdecassation)eventuallyruledthatagreementsshouldonlybeannulledwheremissingorincorrectinformationaffectedthedecisionofthefranchiseetoenterintotheagreement.Theburdenofproofisonthefranchisee.[46] DisputesettlementfeaturesareonlyincorporatedinsomeEuropeancountries.Bynotbeingrigorous,franchisingisencouraged. Italy[edit] UnderItalianlawfranchise[47]isdefinedasanarrangementbetweentwofinanciallyindependentpartieswhereafranchiseeisgranted,inexchangeforaconsideration,therighttomarketgoodsandservicesunderparticulartrademarks.Inaddition,articlesdictatetheformandcontentofthefranchiseagreementanddefinethedocumentsthatmustbemadeavailable30dayspriortoexecution.Thefranchisormustdisclose: a)Asummaryofthefranchiseactivitiesandoperations, b)AlistoffranchiseescurrentlyoperatinginthefranchisesysteminItaly, c)Year-by-yeardetailsofthechangesinthenumberoffranchiseesforthepreviousthreeyearsinItaly, d)AsummaryofanycourtorarbitralproceedingsinItalyrelatedtothefranchisesystem,and e)Ifrequestedbythefranchisee,copiesoffranchisor'sbalancesheetsforthepreviousthreeyears,orsincestart-upifthatperiodisshorter. Norway[edit] TherearenospecificlawsregulatingfranchisinginNorway.However,theNorwegianCompetitionActsection10prohibitscooperationwhichmayprevent,limitordiminishthecompetition.Thismayalsoapplytoverticalcooperationsuchasfranchising. Russia[edit] InRussia,underchapter54oftheCivilCode(passed1996),franchiseagreementsareinvalidunlesswrittenandregistered,andfranchisorscannotsetstandardsorlimitsonthepricesofthefranchisee'sgoods.Enforcementoflawsandresolutionofcontractualdisputesisaproblem:[citationneeded]Dunkin'DonutschosetoterminateitscontractwithRussianfranchiseeswhoweresellingvodkaandmeatpattiescontrarytotheircontracts,ratherthanpursuelegalremedies.[48] Spain[edit] ThelegaldefinitionoffranchisinginSpainisanactivityinwhichanundertaking,thefranchisor,grantstoanotherparty,thefranchisee,foraspecificmarketandinexchangeforfinancialcompensation(eitherdirect,indirectorboth),therighttoexploitanownedsystemtocommercializeproductsorservicesalreadyexploitedbythefranchisorwithenoughsuccessandexperience. TheSpanishRetailTradingActregulatesfranchising.[49]Thecontentsofthefranchisemustinclude,atleast: Theuseofacommonnameorbrandoranyotherintellectualpropertyrightandauniformpresentationofthepremisesorthetransportmeansincludedintheagreement. Thecommunicationbythefranchisortothefranchiseofcertaintechnicalknowledgeorsubstantialandsingularknow-howthathastobeownedbythefranchisor,and Technicalorcommercialassistanceorboth,providedbythefranchisortothefranchiseeduringtheagreement,withoutprejudicetoanysupervisionfacultytowhichthepartiescouldfreelyagreeinthecontract. InSpain,thefranchisorsubmitsthedisclosureinformation20dayspriortosigningtheagreementorpriortoanypaymentmadebythefranchiseetothefranchisor.Franchisorsaretodisclosetothepotentialfranchiseespecificinformationinwriting.Thisinformationhastobetrueandnotmisleadingandinclude: Identificationofthefranchisor; Justificationofownershiporlicenseforuseofanytrademarkorsimilarsignandjudicialclaimsaffectingthemaswellasthedurationofthelicense; Generaldescriptionofthesectorinwhichthefranchiseoperates; Experienceofthefranchisor; Contentsandcharacteristicsofthefranchiseanditsexploitation; StructureandextensionofthenetworkinSpain; Essentialelementsofthefranchiseagreement. Franchisors(withsomeexceptions)shouldberegisteredintheFranchisors'Registerandprovidetherequestedinformation.Accordingtotheregulationinforcein2010thisobligationhastobemetwithinthreemonthsafterthestartofitsactivitiesinSpain.[50] Turkey[edit] Franchisingisasuigeneriscontractwhichbearsthecharacteristicsofseveralexplicitlyregulatedcontractssuchas;agency,salescontractandsoforth.TheregulationsconcerningthesekindsofcontractsinTurkishCommercialCodeandinTurkishCodeofObligationsareappliedtofranchising.Franchisingisdescribedindoctrineandhasseveralessentialcomponentssuchas;theindependenceofthefranchiseefromthefranchisor,theuseofknow-howandtheuniformityofproductandservices,standarduseofthebrandandlogo,paymentofaroyaltyfee,increasementofsalesbythefranchiseeandcontinuity. Franchisingmaybeforadeterminedorundeterminedperiodoftime.Theundeterminedonecanonlybeannulledeitherbyanoticebeforeareasonableamountoftimeorbyajustcause.Thefranchisingagreementwithadeterminedtimeperiodendswithintheendofthetimeperiodifnotspecifiedotherwiseintheagreement.However,terminationbasedonjustcauseisalsoforeseenforfranchisingagreementwithadeterminedtimeperiod. UnitedKingdom[edit] IntheUnitedKingdomtherearenofranchise-specificlaws;franchisesaresubjecttothesamelawsthatgovernotherbusinesses.[51]Thereissomeself-regulationthroughtheBritishFranchiseAssociation(BFA)andtheQualityFranchiseAssociation(QFA). ThereareanumberoffranchisebusinesseswhicharenotmembersoftheBFAandmanywhichdonotmeettheBFAmembershipcriteria.PartoftheBFA'sroleinself-regulationistoworkwithfranchisorsthroughtheapplicationprocessandrecommendchangeswhichwillleadtothefranchisebusinessmeetingBFAstandards.AnumberofbusinessesthatrefertothemselvesasfranchisesdonotconformtotheBFACodeofEthicsarethereforeexcludedfrommembership. On22May2007,hearingswereheldintheUKParliamentconcerningcitizen-initiatedpetitionsforspecialregulationoffranchisingbythegovernmentoftheUKduetolossesincurredbycitizenswhohadinvestedinfranchises.TheMinisterforIndustryandtheRegions,MargaretHodge,conductedhearingsbutsawnoneedforanygovernmentregulationoffranchisingwiththeadvicethatgovernmentregulationoffranchisingmightlullthepublicintoafalsesenseofsecurity.MrMarkPriskMPsuggestedthatthecostsofsuchregulationtothefranchiseeandfranchisorcouldbeprohibitiveandwouldinanycaseprovideasystemwhichmirroredtheworkalreadybeingcompletedbytheBFA.TheMinisterforIndustryandtheRegionsindicatedthatifduediligencewereperformedbytheinvestorsandthebanks,thecurrentlawsgoverningbusinesscontractsintheUKofferedsufficientprotectionforthepublicandthebanks.Thedebatealsomadereferencetotheself-regulatoryfunctionperformedbytheBFArecognizingthattheassociation"punchedaboveitsweight".[52] Inthe2010caseofMGBPrintingvKallKwikUKLtd.,theHighCourtestablishedthatafranchisormayassumeadutyofcaretoafranchiseeincertaincircumstances.KallKwik,adesignandprintfranchisor,hadincorrectlyadvisedMGB,whowaspurchasingafranchise,ofthecostsofundertakingrefitworkneededtomeetKallKwik'sfranchisingrequirements.Inthisparticularcase,KallKwikhadstatedthattheywouldprovideprofessionaladvicetopotentialfranchisees,andbecausetheyhadnotprovideddetailsofthefittingstandardswhichmustbemet,theyhadencouragedMGBtorelyontheadviceofferedbythemselves.[53] UnitedStates[edit] IsaacSinger,whomadeimprovementstoanexistingmodelofasewingmachineinthe1850s,beganoneofthefirstfranchisingeffortsintheUnitedStates,followedlaterbyCoca-Cola,WesternUnion,[54][55]andbyagreementsbetweenautomobilemanufacturersanddealers.[56] Modernfranchisingcametoprominencewiththeriseoffranchise-basedfoodserviceestablishments.In1932,HowardDeeringJohnsonestablishedthefirstmodernrestaurantfranchisebasedonhissuccessfulQuincy,MassachusettsHowardJohnson'srestaurantfoundedinthelate1920s.[57][58]Theideawastoletindependentoperatorsusethesamename,food,supplies,logoandevenbuildingdesigninexchangeforafee.Thegrowthinfranchisingacceleratedinthe1930swhensuchchainsasHowardJohnson'sstartedtofranchisemotels.[59]The1950ssawaboominfranchisechainsinconjunctionwiththedevelopmentoftheU.S.InterstateHighwaySystemandthegrowingpopularityoffastfood.[60] TheFederalTradeCommissionhasoversightoffranchisingviatheFTCFranchiseRule.[61] TheFTCrequiresthatthefranchiseebefurnishedwithaFranchiseDisclosureDocument(FDD)bythefranchisoratleastfourteendaysbeforemoneychangeshandsorafranchiseagreementissigned.[62]Whereaselementsofthedisclosuremaybeavailablefromthirdparties,onlythatprovidedbythefranchisorcanbedependedupon.TheU.S.FranchiseDisclosureDocument(FDD)islengthy(300–700pp+)anddetailed(seeFranchiseDisclosureDocument,above),andgenerallyrequiresauditedfinancialstatementsfromthefranchisorinaparticularformat,exceptinsomecircumstances,suchaswhereafranchisorisnew.Itmustincludesuchdataasthenames,addressesandtelephonenumbersofthefranchiseesinthelicensedterritory(whomaybecontactedandconsultedbeforenegotiations),estimateoftotalfranchiserevenuesandfranchisorprofitability. IndividualstatesmayrequiretheFDDtocontaintheirownspecificrequirements,buttherequirementsinstatedisclosuredocumentsmustbeincompliancewiththefederalrulethatgovernsfederalregulatorypolicy.ThereisnoprivaterightofactionofactionundertheFTCruleforfranchisorviolationoftherule,butfifteenormoreofthestateshavepassedstatutesthatprovidethisrightofactiontofranchiseeswhenfraudcanbeprovenunderthesespecialstatutes.Themajorityoffranchisorshaveinsertedmandatoryarbitrationclausesintotheiragreementswiththeirfranchisees,someofwhichtheU.S.SupremeCourthasdealtwith. InresponsetotheimplementationofCaliforniaAssemblyBill5(2019)whichlimitstheuseofclassifyingworkersasindependentcontractorsratherthanemployeesinCalifornia,theUnitedStatesCourtofAppealsfortheNinthCircuitreinstateditsdecisioninVazquezv.Jan-Pro[63]whichimpactsCaliforniafranchiselawandCaliforniaindependentcontractorlaw[64]bymakingitunclearthatifafranchisorlicensesitstrademarktoafranchisee,whetherthefranchisorincurstheliabilitiesofanemployerforafranchisee'semployees. Thereisnofederalregistryoffranchisesoranyfederalfilingrequirementsforinformation.Statesaretheprimarycollectorsofdataonfranchisingcompaniesandenforcelawsandregulationsregardingtheirpresenceandtheirspreadintheirjurisdictions. Wherethefranchisorhasmanypartners,theagreementmaytaketheshapeofabusinessformatfranchise–anagreementthatisidenticalforallfranchisees. Socialfranchises[edit] Inrecentyears,theideaoffranchisinghasbeenpickedupbythesocialenterprisesector,whichhopestosimplifyandexpeditetheprocessofsettingupnewbusinesses.Anumberofbusinessideas,suchassoapmaking,wholefoodretailing,aquariummaintenance,andhoteloperationhavebeenidentifiedassuitableforadoptionbysocialfirmsemployingdisabledanddisadvantagedpeople. ThemostsuccessfulexamplesareprobablytheKringwinkelsecond-handshopsemploying5,000peopleinFlanders,franchisedbyKOMOSIE,[65]theCAPMarkets,asteadilygrowingchainof100neighbourhoodsupermarketsinGermany.[66]andtheHotelTritoneinTrieste,whichinspiredtheLeMatsocialfranchise,nowactiveinItalyandSweden.[67] Socialfranchisingalsoreferstoatechniqueusedbygovernmentsandaiddonorstoprovideessentialclinicalhealthservicesinthedevelopingworld. SocialFranchiseEnterprisesobjectiveistoachievedevelopmentgoalsbycreatingselfsustainableactivitiesbyprovidingservicesandgoodsinun-servedareas.TheyusetheFranchiseModelcharacteristicstodeliverCapacityBuilding,AccesstoMarketandAccesstoCredit/Finance.[68] Third-partylogisticsfranchising[edit] Third-partylogisticshasbecomeanincreasinglymorepopularfranchiseopportunityduetothequicklygrowingtransportationindustry[69]andlowcostfranchising.In2012,Inc.Magazinerankedthreelogisticsandtransportationcompaniesinthetop100fastestgrowingcompaniesintheannualInc.5000rankings.[70] Eventfranchising[edit] Eventfranchisingistheduplicationofpubliceventsinothergeographicalareas,retainingtheoriginalbrand(logo),mission,conceptandformatoftheevent.[71]Asinclassicfranchising,eventfranchisingisbuiltonpreciselycopyingsuccessfulevents.AnexampleofeventfranchisingistheWorldEconomicForum,alsoknownastheDavosforum,whichhasregionaleventfranchiseesinChina,LatinAmerica,etc.Likewise,thealter-globalistWorldSocialForumhaslaunchedmanynationalevents.WhenTheMusicStopsisanexampleofaneventsfranchiseintheUK,inthiscase,runningspeeddatingandsinglesevents. Home-basedfranchises[edit] Thefranchisingorduplicationofanotherfirm'ssuccessfulhome-basedbusinessmodelisreferredtoasahome-basedfranchise.Home-basedfranchisesarebecomingpopularastheyareconsideredtobeaneasywaytostartabusinessastheymayprovidealowbarrierforentryintoentrepreneurship.Itmaycostlittletostartahome-basedfranchise,butexpertssaythat"theworkisnolesshard."[72] Seealso[edit] AmericanAssociationofFranchiseesandDealers Franchisetermination Franchiseagreement Franchiseconsulting FranchiseDisclosureDocument Franchisefraud Listoffranchises TheFranchiseRule U.S.SecuritiesandExchangeCommission MarthaMatildaHarper,anotherfemalefranchisingpioneer LeslieJosephHooker,AustralianpioneeroffranchisingofLJHookerrealestate Furtherreading[edit] Callaci,B.(2021)."ControlWithoutResponsibility:TheLegalCreationofFranchising,1960–1980."Enterprise&Society,22(1),156–182. 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^TheofferandsaleoffranchisesaregovernedinSpainbytheRetailTradeAct7/1996ofJanuary15asamendedbyAct1/2010ofMarch1.ParticularlyArticle62isapplicabletofranchiseagreements.TheActiscompletedbytheRoyalDecree210/2010ofFebruary26onFranchiseAgreements. ^SeealsoSpainChapterofGettingtheDealThrough.Franchise2011byIgnacioAlonsoArchived2011-01-25attheWaybackMachine ^HowevertherecentPappaJohnscaseshowsthatthecourtswillexpectcleardisclosureofrelevantfactsbythefranchisorbeforethefranchiseesignsupandtherecentYamSengcaseclearlyestablishesthatthefranchiserelationshipinvolvesadutyofgoodfaith.TheTradingSchemesActalsoregulatesMultitierfranchisesFranchiseagreementssubjecttoEuropeanCodeofethicsArchived2011-07-16attheWaybackMachine(blog) ^"FranchiseIndustry".DailyHansard:363WH,part1,part2,part3.22May2007. ^EnglandandWalesHighCourt(Queen'sBenchDivision),MGBPrintingandDesignLtdvKallKwikUKLtd.(2010),EWHC624(QB),published31March2010,accessed25January2021 ^Dant,RajivP.;Grünhagen,Marko;Windsperger,Josef(September2011)."FranchisingResearchFrontiersfortheTwenty-FirstCentury".JournalofRetailing.87(3):253–268.doi:10.1016/j.jretai.2011.08.002. ^Lewandowska,Lucyna(3October2014)."FranchisingasaWayofCreatingEntrepreneurshipandInnovation".ComparativeEconomicResearch.CentralandEasternEurope.17(3):163–181.doi:10.2478/cer-2014-0028.S2CID 153901249. ^Marx,ThomasG.(1985)."TheDevelopmentoftheFranchiseDistributionSystemintheU.S.AutomobileIndustry".BusinessHistoryReview.59(3):465–474.doi:10.2307/3114007.JSTOR 3114007.S2CID 153565786. ^Allen,kolinchakma.Foodservice'stheoryofevolution:Survivalofthefittest(1998).Nation'sRestaurantNews32(4),pp.14–17 ^Howard,T.(1996)."HowardJohnson:Initiatoroffranchisedrestaurants".Nation'sRestaurantNews.30(2):85–86.Archivedfromtheoriginalon2012-07-11. ^"Franchising:ABriefHistory".StateofWisconsinDepartmentofFinancialInstitutions.Archivedfromtheoriginalon2017-07-30.Retrieved22July2017. ^"ABriefHistoryofFranchising–AmericanFranchiseAttorney|WashingtonD.C.,U.S.|FranchiseLaw".Franchise-law.com.Retrieved2017-06-06. ^"DisclosureRequirementsandProhibitionsConcerningFranchising&DisclosureRequirementsConcerningBusinessOpportunities–16CFRParts436and437"(PDF).Ftc.gov.5July2013.Retrieved22March2015. ^"ElectronicCodeofFederalRegulations(eCFR)".ElectronicCodeofFederalRegulations(eCFR).Retrieved2019-12-05. ^"Vazquezv.Jan-ProFranchisingInternational,Inc.,No.17-16096(9thCir.2019)".Justia.com.Retrieved27September2019. ^Solish,Jonathan."ADarkDayforFranchising:NinthCircuitReinstatesitsMisguidedVazquezDecision,UnderminingtheFranchiseBusinessModel".TheNationalLawReview.BryanCaveLeightonPaisnerLLP.Retrieved27September2019. ^"Home–Komosie".Komosie.be.Archivedfromtheoriginalon5July2011.Retrieved22March2015. ^"CAP-Markt:CAPMärkte".Cap-markt.de.Retrieved22March2015. ^"LeMatEurope–PagineStatiche–LeMatEurope".Lemat.it.Archivedfromtheoriginalon2015-04-02.Retrieved22March2015. ^AlvaroHidalgo,TheFranchiseasaDevelopmenttoolArchived2014-05-13attheWaybackMachine ^"TruckingIndustryInfographic–BusinessInsider".BusinessInsider.9April2013.Retrieved22March2015. ^"TopLogistics&TransportationCompaniesontheInc.5000".Inc.com.Retrieved22March2015. ^KissikovBeknur.Franchising. ^IssieLapowsky(May13,2010)."HowtoStartaHome-BasedFranchise".Inc.MansuetoVentures.RetrievedAugust13,2012. Externallinks[edit] WikimediaCommonshasmediarelatedtoFranchises. LookupfranchiseinWiktionary,thefreedictionary. 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