2. 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

3. 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

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