What is franchisements?

Franchising is a type of business model where a company (franchisor) grants the right to a third party (franchisee) to use its trademark and business model in exchange for a fee and ongoing royalties. The franchisor provides the franchisee with support, training, and a system for conducting business.

Franchisement is a legal agreement between the franchisor and franchisee, which outlines all the terms and conditions of the franchise arrangement. It usually includes the territory where the franchisee can operate, the length of the agreement, the fees and royalties, marketing and advertising requirements, and the products or services the franchisee must provide to customers.

Franchise businesses can vary greatly from fast-food restaurants to retail stores, service providers, and even education providers. Franchising offers a proven business model that allows entrepreneurs to start a business with a lower risk than starting a business from scratch. However, buying a franchise requires a significant upfront investment, ongoing royalties, and adherence to strict operational standards set down by the franchisor.