‘Franchises System – A New Business Model’ Analysis of Legal Issues Relating with Franchises

Abstract

When we are entering in shopping mall or commercial complex almost anywhere in the world, one encounters many familiar shops, fast-food restaurants, clothing retail stores, and service providers of different kinds, mostly with familiar brand names that have attained worldwide recognition. Many of these enterprises are not belongs to any of large multinational chains but are, in fact, independently owned businesses of local entrepreneurs. So, how is it that small entrepreneurs around the globe are able to sell the same products, use the same trademarks, and have the same shop decoration and have employees dressed almost identically same? How these local entrepreneurs are legally allowed to do this? The answer is through the franchising system.