What Is A Franchise, And How Does It Work?
In simple terms, franchising is a business model and a business strategy that can be used to grow customers and market share. By forming a strategic alliance around a marketing system, franchisors and franchisees work together to create an image in the minds of their customers about how the company’s products and services can help them. A franchise (or franchising), in other words, is a way of distributing products and services in different markets. There must be a franchisor, who establishes the brand’s trademark or trade name and a franchisee, who pays a royalty and a set-up fee, for the right to do business under the franchisor’s name and system.