TXC 8 Chapter Notes - Chapter 5: Franchising
10 May 2019
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Document Summary
Purchased operations that conform to the franchisers directives" and benefit from the franchiser"s name, buying power, and merchandising expertise. 1/3 of all retail sales come from franchising efforts. Quick start up, franchisor"s methods are proven, rapid expansion possible, limited liability for the franchiser, control over distribution, no need for additional capital. First designer to license his name to a manufacturer is christian dior with bow ties in 1950"s legal agreement between a designer and manufacturer. Allows manufacturer to produce and market a product under the designer"s name. Manufacturers have a highly recognizable name attached, connoting high quality licensor does not have to suffer risks of production retailers present a fashion image using the designer"s name, appealing to consumers through quality and status. Ever expanding empire may lose its exclusivity. Poor quality products reflect on name of the designer/licensor, not the licensee. Manufacturer also endured the designers loss of popularity.
