Franchising system of business has two parties: Franchisor is the original Trade Mark holder and Franchisee is the receiver of right.
Now generally three types of franchising system exist:
1) Product franchising: Under this system, the franchisee gets the right to distribute the trademarked goods from the franchisors or manufacturers by paying fees for this to earn a profit. Generally, highly popular goods are traded. Singer corporation traded their sewing machine and in the automobile industry, this system exists.
2) Manufacturing franchising: Under this system, the franchisee gets the license from the franchisor to produce and market the goods in a particular area. In soft drinks companies, you can see such system.
3) Business Format franchising: Under this system, the franchisor sells the complete right, ie. business name, license, product or services, physical plant or operational strategy to be taken etc. In the hotel, restaurant and education sectors, you can see this system. It is also known as pure franchising.
Yes, there is the Association of Indian franchising, website address is franchiseindia.org, which functions as the monitoring authority of such activities.
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