SCIG Franchises Int'l

Franchising is a method of product or service distribution that is governed by a contract. It is important for anyone deciding to start a business by becoming a franchisee to remember that in franchising a person is tied into a partnership arrangement for a defined period of time.

No business method or industry sector can guarantee success, and franchising is no exception.

A modern franchise includes a format for the conduct of the business, a management system for operating the business and a shared trade identity.

The International Franchise Association defines a franchise as:
"a contractual relationship between the franchisor and the franchisee in which the franchisor offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade name, format or procedure owned by or controlled by the franchisor, and in which the franchisee has made or will make a substantial capital investment in his business from his own resources."