Franchising is a system where companies sell their business formulas to applicants, who then operate independently. A percentage of profits is shared between franchiser and franchisee. There are several advantages to this system. For companies, franchising is a means of raising their (inter)national profiles. The franchisee buys a proven formula and receives support (for example, advertising costs are paid by the franchiser). UK examples are Hometune, Prontaprint Ltd, Co-op Travelcare and Body Shop International plc. Franchising is expected to increase from the current 24 percent of retail sales volume (1996) to 30 percent by the millennium. It appeals to some members of ethnic groups as a means of employing the whole family and, through virtual self-employ-ment, retaining their own cultural identity.
   See also: entrepreneurs

Encyclopedia of contemporary British culture . . 2014.

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