Franchising

Franchising, where independent businesses operate under a shared trademark using a common production process, is an organizational form used primarily by service businesses. Franchising carries a large and growing proportion of retail trade and services, particularly in the United States. Franchising is also commonly used as a method of international entrepreneurship; a recent survey identified over one million franchisees worldwide. To the consumer, franchising has transformed the service sector. Franchising has provided a method and methodology to create chains of service organizations, replacing independent businesses, and reproducing a consumption experience over time and space. In this entry, franchising as a business method is described, followed by its effects on consumers. The American experience is the primary focus.