What is Franchising?
Franchising is a network of interdependent businesses that allow a number of people to share a brand name, a successful method of doing business, and a strong marketing and distribution system.
It is as close as you can get to a "guarantee of success" in business today. Studies show that franchise new business startups rarely fail. That's because the franchisor has already gone through the learning curve, knows the secrets to success for that specific business, and passes this knowledge on to the franchisee.
The power of franchising is realized through the contributions of the two participants. The franchisor provides the established brand or trademark, a proven operating system, start-up support, and ongoing guidance as the franchisee builds their business.
Franchisees pay initial franchise fees and then ongoing royalties for access to the format that the franchisor has developed and for ongoing enhancements to the system. Franchisees are also responsible for the daily operation and management of the business.