Franchising The Nigerian business scene has in recent years witnessed significant growth by way of branch expansion of several leading hotel, fast food and supermarket chains. Some are local outfits while others are multinational service providers. What might however surprise a few is the fact that, in several cases, the facilities, i.e. premises, furniture, equipment and staff do not necessarily belong to the owner of the established commercial name with which the business is run.
The owner of the business facility and the owner of the reputable business name or valuable trademark enter into a franchise agreement whereby the owner of the business premises or facility (the franchisee) buys licensed rights to clone the whole business package from the owner of the valuable business name or trademark (the franchisor) in a specific territory for a specific period, backed by full training and support from the franchisor. In this relationship, the franchisor provides a ready-made, established and tested business format including name, corporate power, know-how, training and support services.
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