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Importance Of Franchising In Marketing

1265 Words6 Pages
1 INTRODUCTION
The purpose of logistics is to plan and coordinate all those activities necessary to achieve desired levels of delivered service and quality at lowest possible cost. Logistics is therefore a link between the marketplace and the operating activity of business. The scope of logistics ranges from the procurement and management of raw materials through the delivery of the final product.
Franchising is a major expansion strategy for hospitality firms into a global market, especially hotels and restaurants to name a few Marriott 's, Hyatt, Hilton Accor, IHG, McDonalds, KFC are a very few examples. Franchise play a very important role in tourism industry. In global markets franchising add value to the chain by enhancing and understanding the local values culture and customs. Franchising is one of the two main types of operations of which the other one owning. Franchising provides restaurants and hotels with stable franchising revenue.
Hence, the concept of franchise is flexible and basically suits service sector. Given that franchise relation are influenced to an extent to which the system can be transfer and sustain in local market in terms of product acceptance, local support and service (John, 1999). Thus due to consistent economic importance of franchise we can find lots of research and literature to help us understand the concept. Broadly speaking, its mission is to get the right materials to the right place at the right time, while optimizing a given
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