If you’d like to start with some broad-brush information about franchising this is the right place.
When it’s done well franchising is a win-win arrangement between the franchisor (the person selling a franchise) and the franchisee (the one buying a franchise) and a highly effective way to grow successful businesses for all concerned.
If you want to find out more about how franchising works, download our What is franchising? presentation.
What is a Franchise?
There are lots of ways to define what a franchise is including some fairly complicated legal definitions but we like to keep things simple.
A franchise is a type of business that works by selling, distributing or supplying its good or services through multiple places each owned and run by another person or business. The other person or business is called the “franchisee” and the main business is called the “franchisor”. Franchisees normally pay the franchisor for a complete set-up package which includes a legal agreement and also pay on an on-going basis for what they receive from the franchisor.
When done well franchising is a real win-win model for business development.