Definition An agreement to use a company’s name, services, products, and marketing. Signs a contract and agrees to follow all of the franchisor’s (the parent company’s) rules For a fee, the franchisor provides service support in financing, operations, human resources, marketing, advertising, quality control, and many other areas

Pros and Cons Advantages Disadvantages Less risk Access to expert knowledge and research Financial aid Ongoing help and support A big name can lead to big success Less profit Stringent guidelines Loss of control Limited creativity Initial and continuing fees

Example Examples of foreign-owned franchises in Canada: McDonald’s Wendy’s Subway Canadian-owned franchises: Boston Pizza Mr.Sub Tim Hortons