In this column, we go back to basics and address two simple questions—what is franchising? And how does it work? As well, we furnish a glossary of business terms that the practitioner should be familiar with.
Franchising is a means of establishing a network of independently owned businesses which sells products or services under a common brand name. It is a system of marketing and distribution in which an independent business (the franchisee) is granted—in return for a fee—the right to market the goods and services of another (the franchisor) in accordance with the franchisor’s established standards and practices, and with its assistance.
