Opinions expressed by Entrepreneur contributors are their own. Anyone with internet access and a mild case of curiosity can look up the definition of franchising. In a strictly technical sense, the ...

Understanding the Context

Franchising definition refers to an arrangement between a franchisor and franchisee wherein the latter acquires the rights to market and distribute the franchisor's products or services using its business plan, brand name, and trademarks. Many business owners who consider expansion are unsure of the options and avenues available to them. While replicating your business through the franchising route is arguably one of the most ... Franchising allows a business owner (franchisor) to expand their business by granting licenses to others (franchisees) to operate under their brand and business model, which can lead to increased...

Key Insights

Franchising is a business practice where a company licenses its business model to another company, or more precisely, where the franchisor licenses some or all of its knowhow, procedures, intellectual property and other rights to sell its branded products and services to a franchisee. [1] If this sounds like a reasonable deal—starting an entrepreneurial venture by piggybacking on an established brand—then maybe franchising is right for you. A franchise model bridges the gap between a company’s growth aspirations and an entrepreneur’s venture-seeking ambition. What is a Franchise? Franchising is a method for expanding a business and distributing goods and services through a licensing relationship.

Final Thoughts

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