What is a Franchise?
Franchising is the practice of using another firm's succesful business model. The word franchise is of anglo-french derivation – from franc- and is used both as a noun and as a (transitive) verb. A franchise is an agreement between a franchisor and the recipient franchisee.. There are, it can be said, three types of franshising: the small, medium and very large franchises.
A franchise is a right granted to an individual or group to market a company's goods or services within a certain territory or location. Some examples of today's popular franchises are McDonald's, Subway, Domino's Pizza, and the UPS Store.
There are many different types of franchises. Many people associate only fast food businesses with franchising. In fact, there are over 120 different types of franchise businesses available today, including automotive, cleaning & maintenance, health & fitness, financial services, and pet-related franchises, just to name a few.
Source : Wikipedia, About.com
