Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchiser licenses its know-how, procedures, intellectual property, use of its business model, brand; and rights to sell its branded products and services to a franchise. In return, the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a Franchise Agreement.
As with any business venture, franchising is not immune to risk. But if undertaken in the right way, franchising can be a vehicle of success for both the franchisor and franchise.
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