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What is franchising?

Franchising is a method of collaboration between an enterprise (the franchisor) and one or more enterprises (the franchisees); its objective is to make use of a concept which encompasses three elements:

1. The concept is based on elements which lead to winning clients over. The franchisor develops the brand's image and reputation, and makes sure their usage is respected. At the end of the contract, the franchisor makes sure those elements are not used outside of the network.
2. The second element is the know-how transfered from the franchisor to the franchisee. Feedback from franchisees is also encouraged since it leads to the improvement of this know-how. The franchisor forbids by contract any form of know-how transmission to competition.
3. The third pillar of the concept is the collection of products, services and technologies which are designed and put in place by the franchisor. Exclusivity to the franchisee, if existent, must clearly be pinpointed. .

Deslandes Dominique
AC Franchise

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