Buying a Franchise

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 can also be 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).

5 Basic Types of Franchise
There are 5 basic types.

  1. Product Distribution franchise.
  2. Business Format franchise.
  3. Product or Trade Name franchise
  4. Manufacturing and Production franchise.
  5. Conversion franchises.

Why Buy a Franchise At All?

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