A Guide To International Business - US Franchising

T J Madigan offers the following royalty-free article for you to publish online or in print.
Feel free to use this article in your newsletter, website, ezine, blog, or forum.
-----------
PUBLICATION GUIDELINES
- You have permission to publish this article for free providing the "About the Author" box is included in its entirety.
- Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity.
- Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only.
- If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links.
- Please send a copy of the publication, or an email indicating the URL to articlesubmit@ebooks.net.au
- Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article.
-----------
Article Title: A Guide To International Business - US Franchising
Author: T J Madigan
Category: Business Opportunities, Business, Career
Word Count: 454
Keywords: Guide,to,International,Business,US,Franchising,articles,information
Author's Email Address: articlesubmit@ebooks.net.au
Article Source: http://www.articlemarketer.com
------------------ ARTICLE START ------------------

One method of doing international business by licensing trademarks is called Franchising. This method dates back to the 1850s where the recurring royalty fee is the prime source of income.

Good illustrations of this in the earliest times were the bars of New South Wales, the agreements between the breweries and these bars can be considered as the first foundation for the modern franchise businesses. Another good example of franchising hitting the international business scene are the telegraph system operated by various railroad companies but controlled by Western Union, and exclusive deals between automobile manufacturers and local dealers.

Franchised-based restaurants paved the way for franchise businesses wave since the 1930s with Howard Johnsons traditional sit-down restaurants and then McDonalds in the 1950s providing the US a franchise business dominion.

Presently, as declared by the Financial Times, if sales by US franchise businesses were converted into national products, it would be eligible as the seventh largest economy in the world.

Guide to International Business Franchising #1
The first step between the willing parties is a franchise agreement that binds the parties together through contractual provisions and strengthening it further by selling ones own products or services through another person holding the license. The agreement also specifies the area of operation under the franchise holder, generally the franchise provider will not grant complete and exclusive control of that area to the franchise holder alone over that particular area.

Guide to International Business Franchising #2
Franchise in the US stands by the jurisdiction granted by the state and federal laws although there is no federal filing requirements for information or no federal registry of franchising.

Guide to International Business Franchising #3
As per Federal Trade Commission Rules, franchise holders are required to have a Uniform Franchise Offering Circular that helps in disclosing the business transactions and purchases that remain involved.

Guide to International Business Franchising #4
Franchise holders are authorized to work under the trade mark by which was developed business system belonging to the franchisor and at the corresponding control from the franchisor, and therefore to use the advantages from positive factors associated with the given name.

Guide to International Franchising #5
Franchise holders should make major investments from own resources and should be the proprietor of the business. The franchise holder owes anyway to pay the franchisor for the rights given and the constant services provided.

As defined by the International Franchise Association, Franchise represents continuous mutual relation between franchisor and franchisee at which knowledge, the image, success, industrial and marketing methods are given franchisee for counter satisfaction of interests.

Franchising often appears to be the best way to future business success, as the norm of bankruptcies are low, however experienced businessmen may show that it is not completely the certain way to success.

T J Madigan has been established in online business since 1998 and is director of a number of successful online projects one of which is http://www.articles.net.au your best source for FREE articles and information.
------------------ ARTICLE END ------------------