Restaurant Franchising, 3rd Edition

562 Restaurant Franchising

Direct franchising, often referred to as licensing, allows a franchisor to set

up a franchise in another country using the system trademark, products,

and services, and to function as does a franchise in the United States.

Direct operating expenses are expenses for those items directly related to

services offered to the customers such as centerpieces, candles, silver-

ware, and napkins.

Direct unit franchising. The franchisor grants a franchise to an individual

or a group directly from the country of origin in the same manner as he

would grant a franchise in their own country. There is no difference in

granting a franchise ...