Quite simply, Franchising is a network of interdependent business relationships that allow a number of owners to share:
• A brand identification
• A successful method of doing business
• A proven marketing and distribution system
What some may not realize is that Franchising is a business strategy – a marketing and distribution system that has proven extremely effective at enabling companies to capture a disproportionate market share. It is a strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company’s products and services can help them. It is a method for distributing products and services that satisfy customer needs.
Franchising is one of three business strategies a company may use in capturing market share. The other two are company owned units or a combination of company owned units and franchised units.