Franchising Concept

The term Franchising is used to designate a contractual relation between the owner of a certain brand (the franchiser) and one or more retailers (the franchisees). By this contract, the franchisee earns the right of use of a brand already established and generally with a solid image in the market. On the other side, receives technical assistance and know-how from the franchiser, besides being able to benefit from a range of savings associated to the existence of shopping centrals and to the realization of joint marketing campaigns. As to the franchiser, can, in a less expensive way, strongly expand its growth, through the use of guaranteed success formulas, receiving certain values from the franchisee in exchange for the cession of the right to use of his brand, particularly entry fees, royalties and other eventually predictable compensations, without losing the control over the several marketing variables such as the price made to the final client, the global brand image and the clients’ service.             

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.