What is franchise?

Franchise is an agreement between two legally independent parties which gives a person (the franchisee) the right to market a product/service using the trademark and trade name of another company (the franchisor). Through this agreement the franchisee has the right to market the product/service using the operating methods of the franchisor. The franchisee has the obligation to pay the franchisor fees for these rights and the franchisor the obligation to provide rights and support to the franchisees.

Advantages of franchise
There are numerous advantages of owning your own franchise business. For instance:

• Owning a franchise allows you to go into business for yourself, but not by yourself.
  
  
• A franchise provides franchisees with a certain level of independence where they can operate their business.
  
  
• A franchise provides an established product or service which already enjoys widespread brand name recognition. This gives the franchisee the benefits of customer awareness which would ordinarily take years to establish.
  
  
• A franchise increases your chances of business success because you are associating with proven products and methods.
  
  
• Franchises offer the customers the attraction of a certain level of quality and consistency because it is mandated by the franchise agreement.
  
  
• Franchises offer important support:
  • training
  • international advertising
  • operating procedures and operational assistance
  • ongoing supervision and management support
  
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