Types of Franchises

Abstract

The importance of the analysis and knowledge of franchises lies in the fact that today this business model, both nationally and internationally, is having a very significant boom. This type of business allows companies to have rapid growth and expansion and, in this way, finance themselves with the money of third parties. The history of franchises begins with the needs of some companies to cover the expectations of their markets in an easy and safe way, even when they do not have the necessary capital to carry them out or had limitations of various kinds. Therefore, in Mexico, franchises have had an important growth since the 90's, where the Industrial Property Law includes it in Article 142; which quotes the following: "There will be a franchise when, with the license to use a brand, granted in writing, technical knowledge is transmitted or technical assistance is provided, so that the person to whom it is granted can produce or sell goods or provide services in a uniform manner and with the operational, commercial and administrative methods established by the owner of the trademark, tending to maintain the quality, prestige and image of the products or services that it distinguishes".