DEFINITION OF FRANCHISE

Some basic terms (according to the European Code of Ethics)

Franchise
Franchise (franchise) is a commercial development strategy of product, service or technology is based on a close and continuous cooperation between companies legally and financially independent, the franchisor (Franchisor) and franchisees (franchise receiver).

Franchisor
Franchisor (Franchisor) grants the franchisee the right to use the franchisor's intellectual property owned and committed to comply with regulations.
franchisor must have a concept of «know-how» that has been tested and proven success in the market. The goal is to accelerate the development of network providers profit franchisor than when doing his own business development.

Franchisee
Franchisee may, in providing financial contributions / financial, both directly and indirectly, using the brand, «know-how», methods and commercial techniques, procedures, etc..
Franchisor is a company leader must have expertise and competence and to avoid actions without mature consideration.
Franchisor will provide commercial assistant and / or techniques on an ongoing basis, in accordance with the written franchise contract.
In other words, the franchise business are:

The company's strategy:
a. where the franchisor to develop business networks
b. upon the success he had, business concepts and know-how
c. Enhancing the benefits of network
d. Cooperation with oranisasi / other companies, other franchisees
e. realize the same success by the franchisee
f. and utilize the help of the franchisor to achieve the above objectives

The company's strategy is important:
a. to transfer «know-how» of his franchisor to the franchisee
b. in the sharing of roles between the franchisor and franchisee
c.Peran constant in helping franchisor / franchisee assistance
d.bagi Franchisee in following the rules
e. in keeping the promises given to customers
f. Equitable sharing of benefits
g. A fair comparison between independence and uniformity of tissue