Franchise
Franchise is a right granted by a business or government to produce or sell goods in a specific geographic region. Examples are Burger King and Holiday Inn.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Franchise. A right granted by a business or government to produce or sell goods in a specific geographic region. Examples are Burger King and Holiday Inn.
According to the Corporate Strategy by Lynch (4th edition),
- Franchise. A form of co-operative strategy in which a firm (the franchisor) develops a business concept and then offers this to others (the franchisees) in the form of a contractual relationship to use the business concept. Typically, the franchisee obtains a tried-and-tested business formula in return for paying a percentage of its sales and agreeing to tight controls from the franchisor over the product range, pricing, etc.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
