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What is a franchise ?

A franchise is a business system where a franchisor (the company selling the franchise rights) gives a franchisee (the entrepreneur buying the rights) the right to use its name and trademarks, as well as access to its products and services. In exchange, the franchisee agrees to abide by the conditions and procedures established by the franchisor and to pay royalties and an initial fee.

The franchise system is often used to expand a brand's presence and to increase business profits. Franchisors provide assistance and training to franchisees, and often provide products and services at preferential prices. Franchisors benefit from the leverage of collective advertising and economies of scale.

Benefits to franchisees include the support and expertise of an established franchisor, access to proven products and services, and a form of intellectual property protection. However, initial costs can be high and contractual obligations can be strict.

There are several types of franchises, including "understand and do" franchises, product franchises, service franchises, product and service franchises, and network franchises. Each of these types of franchises has its own advantages and disadvantages, and it is important to understand the model before committing.

In conclusion, franchising is a form of entrepreneurship that allows entrepreneurs to start their own business.

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