Final answer:
International franchising grants the franchisee the right to use the franchisor's trademark and established business systems, supported by training and assistance. The franchise fee and royalties are paid by the franchisee for these rights. This model allows for global brand expansion while ensuring legal use of intellectual property.
Step-by-step explanation:
International franchising allows the franchisee the right to use a trademark, as well as access to a proven business model developed by the franchisor, which includes the brand's established products or services, operational procedures, and marketing strategies. In addition to employing the trademark, the franchisee is often provided with training, supply chain support, and assistance with starting operations. This relationship is governed by an agreement in which the franchisee pays a franchise fee and ongoing royalty fees to gain the rights to operate under the franchisor's business model. With international franchising, local entrepreneurs can bring popular and recognizable brands to their markets, while benefiting from the franchisor's established reputation and customer base.
Well-known examples of international franchises include fast food chains such as McDonald's, which not only contribute to the globalization of American culture but also have influenced consumer behavior and standardized certain aspects of life in multiple countries. Moreover, the importance of intellectual property through patents, trademarks, and copyrights, as protected by organizations such as the World Intellectual Property Organization (WIPO), is crucial for franchising agreements, as they ensure the franchisee can legally use the intellectual assets of the franchisor in their territory.