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Economic Outcome - Case Study Example

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The paper starts by explaining the meaning of the concept of franchising and the main body will focus on discussing the benefits of the franchise program in any business that is concerned about expanding its operations in order to gain a large market share.   …
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Economic Outcome
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Download file to see previous pages According to the study findings it is imperative to explain the meaning of franchising in order to gain understanding of the whole concept. Basically, franchising is the most common type of contractual relationship in which a channel member called a franchisor links several stages in the production and distribution process.This essay discusses that the relationship created in this particular case involves the franchisor and the franchisee where the later acquires the license or right to operate their business using the trademark of the other company. This kind of relationship is very common especially in fast food business and it has significantly contributed to the success of different businesses. The franchise is licensed to market and distribute the products offered under the trademark of the franchisor. In this particular case, it can be observed that Andy’s Parties will retain its brand name and trademark while licensing other franchisees to market its services which helps business to expand and this also helps it to gain large market share in its operations. This helps the company to increase its income base given that it would be in a position to attract a large number of customers. A close analysis of the case of Andy’s Parties shows that it costs about $60 000 to open company operated stores. This amount is quite high for a company that has been in business for a short time and intending to expand its operations to other market.        ...Download file to see next pagesRead More
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