F ranching A licensing arrangement where the licensor grants the licensee the right to do business in a prescribed manner The franchisee benefits from the reduced risk of implementing a proven concept The major forms of international franchising Manufacturer-retailer systems(Ford, Toyota, or Mercedes-Benz Manufacturer-Wholesaler systems(Coca-Cola Pepsi Cola Service firm-retailer systems(Holiday Inn Wendy's, KFC Copyright 2001 by Harcourt, Inc. All rights reservedCopyright © 2001 by Harcourt, Inc. All rights reserved. 9-8 Franchising A licensing arrangement where the licensor grants the licensee the right to do business in a prescribed manner. • The franchisee benefits from the reduced risk of implementing a proven concept The major forms of international franchising • Manufacturer-retailer systems (Ford, Toyota, or Mercedes-Benz) • Manufacturer-wholesaler systems (Coca-Cola, Pepsi Cola) • Service firm-retailer systems (Holiday Inn, Wendy’s, KFC)