Victoria's Secret Franchising

Franchising is a system of marketing goods or services. This structured business started in the United States in the 50's, then expanded throughout Europe. Franchising involves the owner of the business (known as the franchisor), who agrees to grant rights to the other party, (known as the franchisee), to operate a business using the name and business format developed and supported by the franchisor. This type of business involves a team effort that operates as a chain with less risk and investment required. Each store is very similar and they provide the same product and services. According to Pipes, "As the American economy staggered in the last few years of the 21st century's first decade, many U.S.-based franchisors began to search for growth opportunities overseas, casting a serious eye at international expansion." Part of the reason why American franchisors are considering oversees is because of the difficulty in current U.S. market, and over consumption. The other part is because of the growth in European markets and favorable exchange rates. In the last 50 years

Creating a business plan is key to a successful start. A business plan outlines your goals and how you will get there. Also I can see if I will encounter any threats or opportunities along the way. Following I would meet with the Victoria's Secret headquarters known as Discovery Day. At Discovery Day the franchisee meets with the executives to discuss marketing plans, training programs, and how Franchising operates. Both parties by this time would come to a decision if they want to continue to do business with each other. "A Franchise agreement is signed either at Discovery Day if a Uniform Franchise Offering circular (UFOC) has been previously delivered to the Prospect, or at least ten days after Discovery Day if a UFOC is delivered during Discovery Day." (Euro-american international,