question archive Franchising is a form of marketing and distribution in which the owner (the franchisor) grants to an individual or group of individuals (the franchisee) the right to run a business selling a product or providing a service using the franchisor's business system
Franchising is a form of marketing and distribution in which the owner (the franchisor) grants to an individual or group of individuals (the franchisee) the right to run a business selling a product or providing a service using the franchisor's business system
Subject:MarketingPrice: Bought3
Franchising is a form of marketing and distribution in which the owner (the franchisor) grants to an individual or group of individuals
(the franchisee) the right to run a business selling a product or providing a service using the franchisor's business system.
Franchising is a very familiar form of contractual agreements. For example, KFC has franchised its operations in Pakistan to a Dubai based company name Cupola that drives its businesses in Pakistan in exchange for the profits. KFC has offered Cupola complete control over using the brand, inventories, and raw materials and in return, Cupola is taking the liability of operating all the franchises. However, in case of an incompetent franchisee or licensee, the company may find devastation to its brand name. Furthermore, if appropriate legal terms and conditions are not
defined, then the contractual partner may become a threat in domestic market.
Requirement:
Keeping in view the above scenario and your understanding of the topic, which type of franchise
agreement exist between KFC and Cupola? What are the potential threats KFC must consider
from its partner?
