ABSTRACT
Franchising-the most dynamic business arrangement-–has become the dominant force in the distribution of goods and services in the United States as well as in many other countries. National and international experts believe that franchising has become the primary method of doing business worldwide. Paradoxically, in spite of its popularity and distinct impact on
the economy, franchising still remains a relatively obscure concept. Some view it as an industry in itself, while others associate it with a particular type of business, such as fast food restaurants. Much of the confusion stems from franchising being an umbrella term that covers a wide variety of business arrangements and activities. It is not restricted to a particular type of business, rather it is a method that is applicable to a variety of business dealings. In fact, its strength lies in its adaptability to an ever-expanding array of industries, markets, products, and services. In addition to being responsive to economic development and consumer demands, it is fl exible enough for the distribution of goods and services as conditions demand. This is one of the primary reasons why franchising is commonly referred to as a method or channel for distributing goods and services.
