Franchising is a form of business organization in which a firm that already has a successful product or service (franchisor) licenses its trademark and method of doing business to another business or individual (franchisee) in exchange for a franchise fee and an ongoing royalty payment.
Some franchisors are established firms (like McDonald’s),KFC etc.
an individual or company that sells or grants a franchise for the sale of goods or the operation of a service.
an individual or company that holds a franchise for the sale of goods or the operation of a service.
Advantages and Disadvantages of Franchising as a Method of Business Expansion