What is a Franchise?
A franchise is a legal business relationship between the owner of a business system (which can involve trademarks, trade names, logos, etc) and a person or group that wishes to use the system or identification in a business. It is a plan of distribution under which an individually owned business can be operated as though it were part of a larger chain, with the chain having certain products, systems or designs of benefit to the potential buyer of the franchise.
A franchise basically controls how a business is to be contracted between the two parties involved. These two parties are the Franchisee (the person or group coming into the franchise) and the Franchisor (the person or group that owns the franchise).
Franchising is based on trust between the two parties. Quite simply, the Franchisor provides the business expertise that would not normally be available to a Franchisee. This expertise can include marketing expertise and plans, management advice, financial help, premises, location and design, systems and training, etc. What the Franchisee contributes to the operation is...
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