Franchise Business

A franchise business is a type of business arrangement in which an individual or group (the franchisee) obtains the rights to operate a business under the brand and operational model of an established company (the franchisor). This relationship allows the franchisee to sell products or services using the franchisor’s trademark, proprietary processes, and support systems, often in exchange for a franchise fee and ongoing royalties or percentages of sales.

Franchise businesses typically follow a standardized business model, enabling franchisees to leverage the brand recognition and business strategies developed by the franchisor. This can include training, marketing support, and operational guidelines, aimed at ensuring consistency across different franchise locations. Franchising is common in various industries, including fast food, retail, hospitality, and health services.

Overall, a franchise business represents a collaborative model where the franchisee gains access to a proven business concept while the franchisor expands its brand reach and revenue without directly managing every outlet.