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hips. In product distribution franchising, the franchisor licenses its trademark and logo to the franchisees but typically does not provide them with an entire system for running their business. This is often common with soft drink-bottling industries, automobile, and in petrol retailing.

Second Generation/Business format franchising by contrast, the franchisor transfers a much more comprehensive business package (the format) to buyers of the franchisee. This contains most of the elements needed by the buyer to establish and replicate the business. The buyer also receives detailed instructions and guidance on how to operate the franchise successfully, managerial expertise, training and perhaps financial support if need be.

Diagram 1: Showing Two major types of franchising

There have been other divisions of franchising as recognized by other authors identified as important for the understanding of this research. Justis & Judd, (2007, p.56) identifies two major types of franchising namely: product and trade name and business format franchising. Nathan, (2008 p.54) also classifies business format franchising into six major groupings as follows: executive, job, investment, management, retail, sales and distribution franchise. Also, on the other hand, Murray (2006, p.23), identifies four major categories as, Job, Retail, Management and Investment Franchising.

Franchise Arrangements

Beshel (2001,p3), reiterated that because of the possibilities of so many franchisors, industries and range of investments, there exists different types of franchise arrangements available to business owner. Two types of franchise arrangements were identified:

Single-Unit(direct) franchise

Multi-Unit Franchise ( Area development and Master development franchise)

A single-unit (direct-unit) franchise is an agreement where the franchisor grants a franchisee the rights to open and operate one franchise unit. This is the simplest and most common type of franchise. It is possible, however, for a franchisee to purchase additional single-unit franchises once the original franchise unit begins to prosper, it is then considered a multiple, single-unit relationship.

A multi-unit franchise is an agreement where the franchisor grants a franchisee the rights to open and operate more than one unit. Beshel (2001, p3), also identifies two ways in which multi-unit franchise can be achieved:

An area development franchise or A master franchise.

Under an area development franchise, a franchisee has the right to open more than one unit during a specific time, within a specified area. For instance, a franchisee may agree to open 5 units over a five year period in a specified territory, while master franchise agreement gives the franchisee more rights than an area development agreement. In addition to having the right and obligation to open and operate a certain number of units in a defined area, the master franchisee also has the right to sell franchises to other people within the territory, known as sub-franchises. Therefore, the master fran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。