Franchising FAQs:

Q: Is a franchising the practice of the right to use a firm's business model and brand for a prescribed period of time?

A: Yes.

Q: Is a franchising one of the few means available to access venture capital without the need to give up control of the operation of the chain and build a distribution system for servicing it?

A: Yes.

Q: Is a franchising the World Economic Forum?

A: Yes, and also known as the Davos forum, which has regional event franchisees in China, Latin America, etc.

Q: Is a franchising built on precisely copying successful events?

A: Yes.

Q: Is a franchising the duplication of public events in other geographical areas?

A: Yes, and retaining the original brand , mission, concept and format of the event.

Q: Was a franchising not a growth industry in the United States?

A: Yes.

Q: Is a franchising also used as a foreign market entry mode?

A: Yes.

Q: Is a franchising described in doctrine and has several essential components such as?

A: Yes, the independence of the franchisee from the franchisor, the use of know-how and the uniformity of product and services, standard use of the brand and logo, payment of a royalty fee, increasement of sales by the franchisee and continuity.

Q: Is a franchising only 3% of retail trade?

A: Yes, and which seeks foreign franchise growth.

Q: Is a franchising encouraged?

A: Yes.

Q: Is a franchising quality control?

A: Yes, as the franchisor wants the firm's brand name to convey a message to consumers about the quality and consistency of the firm's product.

Q: Is a franchising a sui generis contract which bears the characteristics of several explicitly regulated contracts such as?

A: Yes, agency, sales contract and so forth.

Q: Is a franchising regulated by the Franchising Code of Conduct?

A: Yes, and a mandatory code of conduct concluded under the Trade Practices Act 1974.