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. The literatures were selected and critically evaluated in a bid to sift the relevant informations, and portray the opinions of relevant authors. It offers academic insight to research previously conducted by authors on the importance of franchising to retail business growth. Lastly, the section acknowledges the principal research questions for this study.

DEFINITIONS OF FRANCHISING CONCEPT

Hill, (2008) defines franchising 'as a specialized form of licensing in which the franchisor not only sells the intangible property (normally a trademark) to the franchisee, but it also insists that the franchisee agree to abide by strict rules as to how it does business', (p.408). It usually involves long term commitments than licensing.

On the other hand, Business format franchising is a joint venture between an independent person (the franchisee) and a business owner (the franchisor) who wants to expand its activities. The venture is governed by a contract. This gives the franchisee the right to operate using the franchisors trade name/ trademark, in accordance with a business format or blueprint. All aspects of the franchisees business are strictly controlled including image, products or service, systems and administration. (HSBC Bank, 2009.p1)

The franchisee pays certain amount of money for the right to use the franchisors trademark.

Firms use franchise arrangements to extend scarce firm resources, because the franchisee puts up both an initial fee and much of the capital investment, franchisors are able to expand their markets without having to generate capital by themselves, and in most cases exploit on the knowledge of the local entrepreneurs in expanding their business. This is an attractive option, particularly in mass consumer services such as fast food that require the construction of many units to achieve brand name recognition and increased market share like McDonald's Restaurants.

BRIEF HISTORY AND DEVELOPMENT IN FRANCHISING

Franchising is highly developed in the USA, although popular in the UK, but a recent phenomenon. Its development dates back to the end of the American civil war (1865), when the singer sewing company franchised exclusive sales territories to financially independent operators. In 1898, General motors used independently owned businesses to increase its distribution outlet. (Lancaster &Reynolds, 2005, p160).At some point, there were some form of disagreements and arguments among historians in the United States regarding when the franchise system first started.

According to Bythe &Bennett,(2008), 'franchising began to gain acceptance as a viable business arrangement with the growth of automobile industry, and also in the petroleum industry during the 1930's', (p.234)

Franchising became one of the fastest growing types of retailing business in the United Kingdom in recent years.It was introduced into the UK in the early 1950's and since those early days, has become respectable and often very profitable business concept as a result of explosion in the number of franchises being operated. Today franchising encompasses products from pipes to pastries and includes such well known names as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。