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I.                     What Is Franchising and How Does It Work? 1.        What Is Franchising? Franchising is a form of business organization in which a firm that already has a successful product or service (franchisor) licenses its trademark and method of doing business to other businesses (franchisees) in exchange for an initial franchise fee and ongoing royalty. 2.        How Does Franchising Work? There are two distinctly different types of franchise systems: ·          Product and Trademark Franchise An arrangement under which the franchisor grants to the franchisee the right to buy its products and use its trade name. For example are automobile dealerships and soft-drink distributorships. ·          Business Format Franchise The...

I.                     Internal Growth Strategies         Involve efforts taken within the firm itself, such as new product development, other product-related strategies, and internal expansion, for increasing sales revenue and profitability. 1.        New Product Development The keys to effective new product and service development, follow: -           Find a need and fill it -           Develop products that add value -           Get quality and pricing right -           Focus on a specific target market -           Conduct ongoing feasibility analysis The top 5 reasons new product fail...