Franchise model

A franchise model is a business strategy where a company (the franchisor) allows individuals or other companies (franchisees) to operate using its brand, products, and business methods. In exchange, franchisees pay an initial fee and ongoing royalties. This model enables franchisees to start a business with a recognized brand and support, while the franchisor expands its market reach with less financial risk. Common examples include fast-food chains, retail stores, and service providers. The franchise agreement outlines the rights and responsibilities of both parties, ensuring brand consistency and operational standards.