Franchise

A franchise is a business model that allows individuals or groups (franchisees) to operate their own business using the brand, trademark, and business system of an established company (franchisor). In this arrangement, the franchisee pays an initial fee and ongoing royalties to the franchisor in exchange for the rights to sell the franchisor’s products or services, access to their business model, training, and support. The franchise relationship often involves a legal agreement that outlines the rights and responsibilities of both parties. Franchising is commonly seen in industries such as fast food, retail, and hospitality, where standardized operations and brand consistency are crucial for success. Through franchising, a company can expand its reach and market presence more efficiently than through direct ownership, while allowing entrepreneurs to start businesses with an established brand and support system.