Restaurant Franchising, 3rd Edition

Introduction to Franchising 11

The process of franchising starts with a concept, which may be

based on an idea, name, process, product, or format.

Intangibility

Services are intangible and cannot be touched, felt, or tasted. This is one

of the major differences between service franchises and retail franchises. For

example, the concept of providing service with a smile is not easy to made

tangible since the service vary based on the customer expectation and ser-

vice provider. This intangibility poses major challenges for services chains.

It is diffi cult for the customers to evaluate services before they buy them or

after they use them. For instance, ...