, 1996). However the provision of support and brand identification made by franchisor, franchisee enjoys the right to profit and runs the risk of loss (Rosenberg and Bedell, 1969). Therefore, the franchisee brings the entrepreneurial spirit and drive to the franchise operation that is necessary to make the franchise successful.
2.3 DIFFERENT TYPES OF FRANCHISING.
The type of franchising can be varied by types and status of business (Lee, 1994), however, generally categorised by its contractual form, the extent of area and empowerment, its relationship in bonding, its business type and the service provided. Among those variances, category of service provided' may be one of the most widely used categories in explaining different types of franchising which is also reffered as first and second generation of franchising.
First generation franchises are undoubtedly important means of product distribution. Nevertheless, when people use the term franchise they are more often referring to what has become known as the business format or second generation franchise' (Meldelsohn,1982). .
The first generation franchising is also referred as product or service franchising and it is based on the right to distribute branded products for the franchiser who has the function of a manufacturer or a wholesaler. On the other hand, business format franchising is based on granting of a license for a predetermined financial return by the franchisor to its franchisees which entitling them to make use of a complete business package, including training, support and the corporate name, thus enabling them to operate their own businesses to exactly the same standards and format as the other units in the franchised chain (Grant, 1985). .
Charles Vaughn (1979) suggests that there are four types of franchise and those explain three subdivisions of first generation franchising and the second generation franchising.