Understanding Franchises: A Guide to the Business Model and its Benefits.

A business made up of semi-independent businesses that all offer the same products or services.

franchise

The term used to describe this type of business structure is a franchise. A franchise is a business where an individual or group (the franchisee) is granted the right to sell a product or service using the trademarked name and operating system of the franchisor. In a franchise, the franchisor typically provides the franchisee with training, marketing, and ongoing support, in exchange for a fee and/or a percentage of the franchisee’s sales.

Each franchise location is owned and operated by an individual or group, but they all follow the same business model and offer the same products or services. This allows for consistency across all franchise locations and allows customers to expect the same level of quality, service, and experience no matter which location they visit.

Some well-known examples of franchises include McDonald’s, Subway, and 7-Eleven.

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