A Primer on Franchising in the United States: A Vehicle for Economic Mobility?
Keywords:
"business format franchise", Benchmarking, distributorship, franchise fees, franchising, master franchise, quality control
Abstract
Part I of this two-part study introduces the concept of franchising, outlines its unique elements, delineates the categories or types of franchises and lines of businesses involved in franchising, describes the benefits of franchising in the U.S. economy, provides a guide to the various types of fees associated with the franchise relationship, and discusses the issues surrounding performance measurement and master franchising. In Part II, the authors will discuss the important legal aspects of franchising centering on the franchise contract, important Federal Trade Commission required disclosures associated with the Franchise Disclosure Document (FDD), and aspects of antitrust law applicable to the franchise relationship.
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2013-06-24
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