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What does franchising mean?

Franchise rights refer to an individual or enterprise (the franchisor) who owns the ownership of a unique product, equipment, trade patent or service mark operating system and grants it to other individuals or enterprises (the licensee). ) The right to conduct business activities in the same industry in a specific area and period in a predetermined manner.

Franchises generally include three different forms: trademark franchise rights, product franchise rights, and operating model franchise rights.

The concept of franchising. Franchising, also known as franchise operation, means that the franchisor transfers its own trademarks (including service marks), trade names, products, patents and proprietary technologies, business models, etc. The form of a franchise contract is granted to the franchisee. The franchisee shall engage in business activities under the franchisor's unified business model and pay corresponding fees to the franchisor in accordance with the provisions of the contract.

Several common ways to use commercial franchise rights:

1. Ordinary franchising: The headquarters grants franchise rights to franchisees, and the franchisees use these franchise rights. Carry out operations;

2. Entrusted franchising, that is, the headquarters sells the franchise to an agent, who is responsible for granting franchise rights in a certain area;

3. Development Franchise chain, that is, the franchisee buys out the franchise of a certain area of ??the headquarters, and also buys out the franchise of the headquarters to establish several branches in the area. When it is necessary to build another branch, the franchisee does not need to apply to the headquarters;< /p>

4. Ownership cooperation franchising, that is, the headquarters and franchisees jointly operate, and both parties hold branch shares;

5. Distribution of franchises, the head office not only grants franchisees to franchisees rights, and also granted it the right to set up wholesale warehouses to supply and distribute goods to other franchise stores.