
6 Restaurant Franchising
In addition to mutual benefi ts provided to franchisors and franchisees,
franchising provides economic benefi ts to a region by providing employ-
ment, tax revenues, economic multiplier effect, and other related community
benefi ts. It also promotes expertise, skills, and expertise among available
human resources within the region. Since franchising is closely linked with
entrepreneurship, it also helps in bringing forth entrepreneurial and manage-
rial capabilities within the labor force.
BASIC CONCEPTS AND DEFINITIONS
OF FRANCHISING
According to the Federal Trade Commission (2007) the following terms
defi ne various legal aspects ...