Franchise Store Chain
Some companies will concentrate their resources on marketing their brand rather than developing a
chain of stores. The marketing creates demand for the brand, which may be a group of unique products or may be a unique sales format. The founding company will then franchise others to open their own stores and to sell the brand. The company that establishes the franchise operation is the franchisor. The storekeeper is the franchisee.
Symbiotic Arrangement
This can be a symbiotic arrangement because the franchisor has a sales outlet for its brand and the franchisee benefits from the marketing and/or
part-exclusivity of selling a unique brand.
Exclusivity
Often the franchisee is restricted to purchasing the brand exclusively from the franchisor.
Franchisor Control
The purchase of point of sale material and
shop fixtures will also be under the direction of the franchisor in many cases,
and the design of the store and the methods and procedures carried out by the
staff may also be under the franchisor's instruction..
Some franchises are so valuable that the franchisor can charge money just for a
license to open a franchise outlet before any trading has taken place.
Non Franchised Chain | Franchise Store Chain
Clothing and Accessory Store | Department Store | Distance Retailing | Door-to-Door Retailing | Chains | Party Retailing | Single Independent Non-Franchised Store | Street Market | Supermarket | Van Retailing | Warehouse Club
History | Marketing | The Supply Chain | Types of Retail Outlet
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