What is franchise organisation?
A franchise organization can be described as a form of doing business where an individual entity operates on behalf the manufacturer under his name. The manufacturer in this arrangement is known as the franchiser and the business who operates under its name is called the franchisee. The franchisee has to pay the franchisor a royalty fee out of his total profits to work in his brand name.
The arrangement of franchising involves a long-term but fixed relationship between both the parties by providing the franchisee the licensed advantage to take the benefits of the manufacturer's established brand identity. The franchisor also provide assistance in organizing the business to the franchisee as it represents him in the market.
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