Product Distribution Franchising in India is fast giving way to the development of Business Format Franchising, which first evolved in response to the growing services sector. Franchising is characterized by an ongoing business relationship between franchisors & franchises that covers the product, services & trademark as well as the entire business concept.
International Franchise Association of America;
“1. A franchise operation is the contractual relationship between the franchisor & the franchisee
- in which the franchisor offers or is obligated to maintain a continuing interest in the business of the franchisee in such area as know-how & training
- where in the franchisee operates under a common trade name or procedure owned & controlled by the franchisor &
- in which the franchisee has or will make a substantial capital investment in his business from his own resources.”