Franchising generally includes three different forms: trademark franchising, product franchising and business mode franchising.
The concept of franchising. Franchising, also known as franchising, refers to trademarks (including service trademarks), trade names, products, patents, proprietary technologies and business models granted by franchisers. In the form of franchise contract, the franchisee shall engage in business activities under the unified business model of the franchisor according to the provisions of the contract, and pay the corresponding expenses to the franchisor.
Several common ways of commercial franchising;
1. General franchising: the headquarters grants franchises to franchisees, and franchisees use these franchises to operate;
2. Entrustment, that is, the headquarters sells the franchise stores to agents, who are responsible for granting franchise rights to a certain area;
3. The development of franchise chain, that is, franchisees buy out the franchise of a certain area of the headquarters, and also buy out the franchise of the headquarters to establish several branches in this area. When it is necessary to build another branch, franchisees do not have to apply to the headquarters;
4. Ownership cooperation franchise, that is, the headquarters and franchisees jointly operate and share the share;
5. Distribution franchise. The head office not only grants franchisees franchise rights, but also grants franchisees the right to set up wholesale warehouses to supply and distribute goods to other franchisees.