Forms of Franchising

There are different forms of franching which are shown below:

1. System => Manufacturer => Retailer
Example: Automobile dealership

2. System => Manufacturer => Wholeseller
Example: Soft drink companies

3. System => Service Enterprise => Retailers
Example: Fast food outlets.

In addition to above system, sometimes cross or reverse franchise system are happend among the businessmen, where one type of business enters into an agreement of franchising with another type of business.

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