What is franchising?
Definition of franchising
Franchising is a way of growing a business, particularly in diverse locations, without needing to recruit additional employees. A franchise is created by a franchisor, who allows individuals (known as franchisees) to buy the right to use the business's name, logo, and methods of operation.
The franchisee usually also has to pay the franchisor an annual fee, which may be fixed or it may be a percentage of their franchise's sales or profit.
Each franchisee typically operates in a different geographical location, to avoid competition between different franchisees.
Example of franchising:
McDonald's is a good example of a franchise business. In the UK 65% of their restaurants are franchised and 35% are company-owned.
Uh-oh, we're missing some cookies 🍪
We respect your cookie choices so we have only set cookies you agreed to on this website.
Normally you'd see some comments here but we need functional cookies to make that happen. Allowing those cookies would make the comments visible.
The choice is yours.