Franchising

• Companies with successful domestic operations may opt for franchising.
  • Franchising is popular with restaurants and retailers.

• Franchise agreements give the franchiser more control over marketing.
  • It is the company's reputation and existing market relationship that adds value to the product.

• Franchisng requires large expenses to support foreign marketing such as advertising.
  • However, overall investment by franching is much less than for company-owned sales outlets.

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© 2004 John Michael Pierobon

Notes