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A license to operate a business using someone else's brand and business model.

Business Glossary provided by
A franchise is a business arrangement where the franchisee pays a franchisor for the right to use the brand and operate a business under the franchisor's system, usually with certain rules and standards. Franchising is a way to expand a business and distribute products and services through a licensing relationship. It is a method that allows for rapid expansion by using the investments of franchisees and ensures consistency in the brand's product or service delivery. The franchisor provides a proven business model, brand recognition, and support in various areas including training and marketing, while the franchisee brings local market knowledge, capital, and dedication to day-to-day operations.
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