| The Franchising System |
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The Italian association Assofranchising describes the Franchising as follows. Franchising (or business affiliation) is a form of ongoing cooperation for the distribution of goods or services between an entrepreneur (Parent company or Franchisor) and one or more entrepreneurs (Affilates or Franchisees), legally and financially independent from each other, who stipulate a special contract by which: The Franchisor grants the Franchisee the use of its business formula, including the right to make use of his know-how and his distinctive logos and trade marks, as well as other services and forms of assistance that enable the Franchisee to run his business in line with the Franchisor’s image. The Franchisee undertakes to follow the business policy, protect the Franchisor’s image in the reciprocal interest of both parties and the final consumer, and to comply with the agreed contractual conditions.
In the case of the NINEtNINE Cent-shop, the Franchisee operates his store independently and is supported in the opening and running of the store by the parent company S.M.S Distribution s.r.l. based in
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