2. FRANCHISING -”SEMI-INDEPENDENT BUSINESS OWNERS (FRANCHISEES) PAY FEES & ROYALTIES TO A PARENT COMPANY (FRANCHISER) IN RETURN FOR THE RIGHT TO BECOME IDENTIFIED WITH ITS TRADEMARK, TO SELL ITS PRODUCTS OR SERVICES, & OFTEN TO USE ITS BUSINESS FORMAT & SYSTEM.”

3. TYPES OF FRANCHISING

4. 1) TRADE NAME FRANCHISING -THE FRANCHISEE PURCHASES THE RIGHT TO USE THE FRANCHISER’S TRADE NAME WITHOUT DISTRIBUTING PARTICULAR PRODUCTS EXCLUSIVELY UNDER THE FRANCHISER’S NAME.

5. 2) PRODUCT DISTRIBUTION FRANCHISING -A FRANCHISER LICENSES A FRANCHISEE TO SELL ITS PRODUCTS UNDER THE FRANCHISER’S BRAND NAME & TRADEMARK THROUGH A SELECTIVE, LIMITED DISTRIBUTION NETWORK.

6. 3) PURE FRANCHISING -A FRANCHISER SELLS A FRANCHISEE A COMPLETE BUSINESS FORMAT & SYSTEM.

7. BENEFITS OF BUYING A FRANCHISE

8. 1) MANAGEMENT TRAINING & SUPPORT

9. 2) BRAND NAME APPEAL

10. 3) NATIONAL ADVERTISING PROGRAMS

11. DRAWBACKS OF BUYING A FRANCHISE

12. 1) FRANCHISE FEES & ONGOING ROYALTIES

13. 2) MARKET SATURATION

14. 3) LESS FREEDOM