FRANCHISING AND ITS APPLICATIONS IN SLOVAK REPUBLIC

Abstract

The paper focus on characteristic of franchising as the opportunity for firms to start the business. Franchising is an agreement in which franchisees receive the right to operate a business under the franchisor’s trade name in exchange for paying a fee and operating according to a specific plan (Flităr, 2003). In other words, this method of distribution is based on a contract in which the franchisor gives franchisees the right to operate a business under its trade name. In exchange, the franchisees pay a specific amount and operate the business according to a plan specified by the franchisor (Flităr, 2003). We also analyse the situation in Slovak republic where franchising is still used not so often as in the other EU countries.

Keywords

• franchising
• code of ethics
• franchisor
• franchisee