Franchising- a definition
When used in the UK or USA, the term is used when referring to many forms of operations.
Oftentimes operations, which we in Scandinavia would not connect with franchising. This is because the term is used rather more restrictively in Scandinavia than in many other countries.
The cooperative method franchising can vary in it contents as a model for cooperation. Generally one can discern three main tupes fo franchises:
- Business Format Franchisng
- Product Distrbution Franchising
- Trade Name Franchising
However, most companies that deal with franchisng, do not usually categorise themselves as belonging exclusively to one category. The boundaries between them are often blurred.
Business Format Franchising
This is the form of franchising which in Scandinavia is most commonly associated with the term. Business Format Franchising means that the franchise includes a complete concept to run a certain operation. A definition of Business Format Franchising would be this:
Franchising means that one who onws a business concept, offers it to others to be used in their business operation in exchange for payment.
When the term “Franchising” is used on this website, it refers to Business Format Franchising unless otherwise stated.