Featuring the Franchisee – Franchisor Relationship - The Success Razz
The franchise industry has come changed a lots and there are lots of development in the same, pointing out the story of Singer Sewing Machine introduced its first franchise in America. The established of the dealers and gave instructions as regards the usage and also supplied the replacement parts. Thus this was a support to the customers and the dealers thus smoothening the process.
Licensing of trademarks,
Payment of any up-front fees, and
Continuing obligations of the operator to the originator
Above are the three important things to be considered in franchisor franchisee relationship. The franchise company is not called the parent company and the franchise owner is not the subsidiary, one must understand both of them are separate legal entities. [/b]
There exists a system of doing business and when new franchisors come up they are given training of the ongoing support services. It is often seen that franchisors network to up bring new ideas for franchising as well as to solve problems. However the franchisor has to pay the fee to access the use of name and trademarks for sure.
At the end franchising is all about trust and faith on each other. Franchising exists and succeeds because it is a relationship founded on mutual trust, respect.
For the newbie who learn from the existing ones there is no need to re-invent the wheel with franchising, as most of the work in setting up the business has been done, and most of the mistakes have already been made and solved with strategies available to the new entrants.