SOCSCI 2EN3 Lecture Notes - Lecture 4: Tim Hortons, Boston Pizza, The Keg
2 Oct 2018
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Document Summary
A business model revolving around a two-party legal agreement, whereby the franchisee conducts business according to terms specified by the franchisor. A franchisor is interested in selling the franchise not in the day to day operations. A new franchise outlet opens every two hours. There is one franchise for every 400 canadians. Franchisee: an entrepreneur whose power is limited by a contractual relationship with a franchising organization. Runs the franchise, owns it, they can sell it if they want to. Franchisor: the party in franchise contract who specifies the methods to be followed and the terms to be met by the other party. The person who sets the terms and conditions of how the company is run or if you want to sell it. Tim hortons; coffee, donuts, cups, machines all have to be purchased from tim. Hortons even if you find it cheaper elsewhere. Franchise contract: the legal agreement between franchisor and franchisee.
