08 Sep, 2017

Franchise Companies

Franchise is a term which generally means having a right or privilege to do something. In commercial sector owning franchise companies means having legal protection and rights to run the business of a brand or company as a side branch in an area far away from the main office of that company. This is the way franchise companies are set up and run. Basically the franchises are thought to include the business method or a trademark which includes business, tax laws and license. This license is provided by the headquarters of the specific company to the branch working under its name. Under this license, the branch can legitimately function under the permission of the main headquarter of the company or organization. There are many businesses which can form franchises in different parts of the world. The expansion of a company totally depends on the popularity of the company and funds revered for its expansion. In this way franchise build up can be accomplished in the form of establishment of a chain of companies having the management controlled by the center. So the franchise companies are managed centrally from the main headquarters and all the reforms are made in the light of directions given from the main office of the company. Being the legitimate branches of the main companies the franchise companies have got the right to sell the products of that specific brand and business under its patronage. Other than commercial products, there are many other services which are provided to customers all over the world by means of the franchise companies established in various parts of the world. An example of these franchises is that of a news company, film marketing or other media services. A very famous example of the media franchise is the cable franchise. Franchise companies can be established by any company in any part of the world. Most of the time a chain or branches of a company are established on the basis of certain factors. It may be a bakery, a cosmetics company, salon, restaurant and many others. It is the franchise company which is aimed at running a company's successful business. It represents a business model which is also used as the practice. A franchise is basically meant for the distribution of products at the prescribed costs. It is also responsible for maintaining the image of the company in other areas of the zone or of the world.