Franchiser Meaning: Definition, Examples, and Translations
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franchiser
[หfrรฆntสaษชzษr ]
Definition
business context
A franchiser is a person or company that grants a franchise to another party, allowing them to operate a business under their brand and business model. The franchiser typically provides support in areas such as marketing, training, and operational procedures. In return, the franchisee pays fees and royalties to the franchiser. This relationship benefits both parties: the franchiser expands their brand's reach while the franchisee gains the right to operate a proven business model. The concept is widely used in various industries, including food and beverage, retail, and services.
Synonyms
brand manager, franchise owner, licensor.
Examples of usage
- The franchiser provided extensive training for new franchisees.
- Many franchisers offer strong brand recognition as a selling point.
- A successful franchiser usually has a well-defined business model.
- The franchiser outlined their expectations in the franchise agreement.
Translations
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Interesting Facts
Business Models
- Franchisers often provide a detailed business plan, training, and ongoing support to franchisees to maintain brand consistency.
- In 2020, the U.S. franchise industry generated over $700 billion in sales, highlighting its significance in the economy.
Legal Framework
- Franchising is regulated by specific laws in many countries to protect franchisees and ensure fair practices.
- In the US, the Federal Trade Commission (FTC) requires franchisers to provide a Franchise Disclosure Document (FDD) to potential franchisees.
Cultural Impact
- Many fast-food chains around the world operate on a franchising model, making familiar brands accessible across different cultures.
- Franchising allows for local adaptation of products and services, blending global brands with local tastes.
Successful Examples
- McDonald's is one of the most recognized franchisers globally, with more than 38,000 locations in over 100 countries.
- Subway and Dunkin' are also leading examples of successful franchises that began as small businesses and expanded through franchising.
Origin of 'franchiser'
Main points about word origin
- The term 'franchise' comes from the Old French word 'franchir,' meaning 'to free,' implying the freedom of operating a business under a recognized name.
- The concept of franchising became popular in the United States in the early 20th century, particularly with the rise of the automobile and fast-food industries.
The term 'franchiser' originates from the word 'franchise', which comes from the Old French word 'franchir', meaning 'to free'. The concept of franchising began to take shape in the 19th century, especially in the United States, when companies sought to expand their businesses through a more decentralized model. The franchiser, as a key figure in this model, emerges as a provider of rights and support to franchisees. This approach helped businesses scale effectively while allowing individuals to own and operate their own businesses under established brands. Over the decades, franchising has evolved into a multi-billion dollar industry encompassing a variety of sectors, allowing for the distribution of products and services globally.