Introduction:
Franchising is a business model where a company (the franchisor) licenses its brand, products, and business model to a franchisee in exchange for fees and royalties.

Definition:
In franchising, the franchisee operates a business under the franchisor’s established brand and system, which helps ensure consistency across multiple locations.

How It Works / Examples:
Fast-food chains like McDonald’s are classic examples. The franchisee invests in opening a store, and the franchisor provides the brand, training, and ongoing support.
Learn more on Wikipedia: Franchise.

Why It Matters:
Franchising allows rapid expansion with lower capital investment while providing franchisees with proven systems and brand recognition. It’s a popular model for established businesses and entrepreneurs looking for a lower-risk investment.

Additional Resources:

• Explore franchise business guides for further reading.