The definition of franchise itself (for example in European Code of Franchise Ethics) gives a brief description of this specific kind of business. The franchisor offers to the franchisees a „keys in hand" business concept and a „package" of services for creation and administration of a successful franchise business. So the franchise in fact means „partnership for profit" based on division of labour and specialization between franchisor and franchisee.

The basic idea of the franchise is to sell several times over a business concept already created. That means that the system is basically predetermined to subsequent expansion – on both a national and an international level - and is therefore in a position for dynamic growth.

The franchise type of business is being applied mainly in the area of small and middle-sized businesses. It can be suitable for both individuals and corporations. Based on foreign experience and practices, the franchise is mostly applied in commerce, services and gastronomy. For expansion on new markets, above all international ones, the method of „master-franchise" in the most convenient.

The franchise is not just a „fashionable" matter but it is a logical result of the changes on the Czech and European markets. It offers many advantages, more secure business, and relatively high return of invested funds. Based on European Union countries statistics, the franchise business is six times more successful than other types of business operations.

The franchise is being applied in all countries of the world. The globalization of successful franchise systems increases every year. It is the globalization itself that opens up possibilities and markets for business in the different regions of Europe.

More details on: www.czech-franchise.cz