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refully developed, uniform site selection criteria and architectural standards, genuine understanding of the competition, relationships with suppliers, lenders, real estate's developers, franchisee profile and screening system, an effective system of reporting and record-keeping, research and development capabilities, communication system, national, regional and local advertising, marketing and so on.

Sherman (2003, p.417), went further to acknowledge that 'Responsible franchising starts with an understanding of the strategic essence of the franchising structure'. He identified three critical components of the franchise systems from the franchisors perspective. The brand, which creates the demand, allowing the franchisee to initially obtain customers, the brand includes the company's trademarks and service marks, its trade dress, decor and all of the intangible factors that create customer loyalty and build brand equity, the operating system, which essentially delivers the promise, thereby allowing the franchisee to maintain customer relationships and build loyalty, the ongoing support and training that the franchisors provide, supplying the franchisee with the tools and tips to expand its customer base and build its market share.

Sherman, (2003,) also acknowledges the importance of customers in any responsible franchising business concept. He mentions that 'the responsibly built franchise system is one that provides value to its franchisees by teaching them how to get and keep as many customers as possible who consume as many products and services as possible, as often as possible',(p.417).

He concludes that the focus must always be on the customer, where the franchisor essentially licenses and delegates the task of local brand building and market expansion to the franchisee in its local territory. (Sherman, 2003, p.417)

Importance of Franchising To Business Growth and Expansion

Franchising has gained much popularity in modern business environment over the years, because of its success in contributing to business growth and expansion globally which is the primary aim of this research. This can be viewed from the perspective of the franchisee and franchisor respectively.

Sherman (2003) acknowledges the growth of a business via business-format franchising in the United States. He maintains that 'The ability to obtain operating efficiencies and economies of scale are among the reasons for franchising and one of the key components of a responsible franchising strategy is a proven type of location that will serve as a basis for a franchising strategy', (p.411).

Over the past three decades, franchising has emerged as a popular expansion strategy for a variety of product and service companies. Sherman,(2003), points to the importance of franchising, he states that 'recent international franchise association (IFA) statistics demonstrates that retail sales from franchised outlets comprise nearly 50% of all retail sales in the U.S, estimated at more than $900 billion and employing some nine million people in 2000'. (p.411)

Also in his view, Sherman,( 2003,p 411), points out to what has made franchising so popular in the U.S. and globally as a business development and expansion strategy,本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。