Concept in Definition ABC

The concept of franchise is a concept that is used in the business world and that refers to a type of economic activity commercial that takes the successful model of a company and reproduces it in another region in order to obtain proven and more or less controllable results. Franchises can be very beneficial but also problematic: while a franchise gives the entrepreneur the name and the confidence that the brand already owns without having to start from scratch, logically a right to be able to use the name of the successful company, which in some cases can be quite expensive. Franchises are considered a characteristic element of the phenomenon of globalization because it means that a particular company can be reproduced under the same conditions in different parts of the world.

Franchising is basically taking the model of a successful company and using it for a person to start their own business. Thus, the entrepreneur pays for the right to use a brand, a name and a

trajectory that you have your own clients, which frees you from having to create a whole number of your own clients. In addition, franchises are usually carried out with companies or brands that have a high level of success and are widely recognized. scale, for which the entrepreneur starts his business with certain benefits. Clear examples of franchises are fast food chains like McDonald's, coffee shops like Starbucks or other services like Blockbuster.

Franchises allow a company that emerged in a specific point of the planet to be reproduced exactly the same anywhere in the world since the company mother is responsible for generating the same profile, the same space, the same product in all parts of the world, thus ensuring that the new entrepreneur has a reliable and recognized product or service.

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