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Franchising Business Issues and Origin

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The franchisee purchases the right to operate a business. The business takes the form of purchasing the products, distribution, and the delivery of the products of the services and goods. The operators initially operate individually but as the business grows, there comes the need for the employment of new staff. The basic thing in this franchise is that the business may be home-based, mobile or may require just a small office for its operations. Examples of this are the motorist services or the security service. This is also known as single operator franchise.

[Bertrand, 1999]6. Executive franchisesThis is a franchise that is known for extending consultant services. The services offered are on project management and financial matters and decisions are mostly made in a board room. The premises are not important in this case as the services can be offered out in the client's premises or where the person offering the services may not require to travel, this can be home-based. Some of the services offered are on cost management, stress and accountancy management. 7. Sales and distribution franchiseThis is a type of franchise that the franchisee is always on the move to distribute the products of his territory.

The franchisees normally do this alone but the growth of the business eventually causes him to invite new staff to assist in the distribution. Some of these products are like drinks and foods for pets. 8. Master franchise licensees  In this type of franchise, the franchisee operates exactly like the franchisor. He duplicates all the functions and his coverage is very great as it may cover a whole region leave alone a territory. To be given this right, the franchisee must be a very experienced person and his business must have a good record where it can produce a good business plan that is just like that of the franchisor.   This industry is highly regulated and the state and federal laws.

These have been put in place to govern the disclosures of the franchisees, their registration and their restrictions as well as the termination and restrictions of the franchisees.    

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