What is franchising?

Franchising is an agreement between two entities where the owner (franchisor) of a

company grants the right to the other party (franchisee), to use its trade or trademark
and also specific business processes and techniques for producing and marketing
goods or services. In general, the franchisor lists all the terms and conditions to the
franchisee on the basis of which the entire business is conducted. The franchisor
provides all these facilities to the franchisee in return of a fee. For this purpose, the
franchisee willing to do a business then provides the required time and capital to the
franchisor in order to utilize all the available resources. Hence, it is a relationship
between the franchisor and franchisee, who are individual business entities, may be in
form of sole proprietorship, partnership or corporations.
IMPORTANCE OF FRANCHISING
Franchising allows bigger businesses to branch out and grow while giving
entrepreneurs and small business owners a chance to run their own operations with the
help and support of a larger organization with a proven formula for success.
Franchising is a tempting way to find business success. However, it’s essential to
understand what’s involved before taking advantage of this less risky – yet still
rewarding – option for starting a business.
EXAMPLES
 McDonald’s.
 KFC.
 Pizza Hut.
 Subway.
 Dunkin’ Donuts.

What is wholesaling?
A comprehensive process of selling goods and services to the people who buy those
goods or services for business use or resale is called as wholesaling. The entire activity
of wholesaling does not include retailers, farmers, and manufacturers as they are
basically involved in production activities. A wholesaler is a person who is engaged in
the wholesaling activities.
IMPORTANCE OF WHOLESALING
It is an important segment of the entire distribution line due to its effect on the economy.
It is a vital part of the distribution channel, holding the relationship between
manufacturers and retailers. When there are institutional consumers in the market, the
revenue generated is high. Wholesalers are small in number since they handle a more
concentrated group of customers, unlike retailers.
Wholesalers have a bigger control of prices. Operating costs include advertising costs,
rent charges, inventory charges, etc. Their cost and profits depend on a variety of
factors like efficiency, the money value of the services offered, turnover of the inventory,
etc.
EXAMPLES
 IndiaMART
 GlobalMarket
 TradeWheel
 Made-in-china
 eBay

What is retail management?

Retail management is the process of running and managing retail outlets’ day-to-day
activities surrounding the selling of goods and services to customers. It is the process
that aims to make sure that customers are happy with the goods and services they
purchase and that retail outlets run smoothly and remain profitable.
IMPORTANCE OF RETAIL MANAGEMENT
Retail management is crucial to the success of any retail store. Key to any effective
retail management strategy are the individual store managers. They take care of store
employees, help achieve sales goals, assist with maintaining customer satisfaction,
oversee the daily activities of the retail outlet, and empower colleagues who may be
potential retail store managers in the future.
EXAMPLES
 Merchandise Manager.
 Assistant Store Manager.
 Customer Service Manager.
 District Sales Manager.
 Food or Product department Manager.
 Sales Manager.
 Store or warehouse Manager.