Franchising System

Franchising is a business model where one party, the franchisor, lets another party, the franchisee, use its brand, products, and operational systems in exchange for fees or royalties. The franchisee operates a location (e.g., a restaurant or retail store) under the franchisor's established name and guidelines, benefiting from the franchisor's reputation and support. This system allows for rapid expansion and brand recognition while providing the franchisee with a proven business model. Examples include fast-food chains and retail stores, where the franchisee runs the day-to-day operations while following the franchisor's established procedures.