What is franchising and franchise

Before moving on to the practical aspects of creating your own company using someone else's brand and reviewing options, let's understand the theory - sometimes it is very useful to know it.

Basic principles of franchising

Franchising is a system of market relations, implying the transfer to an independent person or company (franchisee) of the right to sell goods or provide services on behalf of the owner company (franchisor). We can say that the franchisor grants the right to lease its own brand, which brings profit both to the company itself and to the “clone”. However, it is worth knowing that the terms of the contract strictly regulate the actions of the franchisee: the agreement can be simple, or it can consist of the smallest requirements for the use of a trademark. There is also a clause in the contract according to which the official distributor undertakes to buy a set number of units of goods for a certain time. The key concept of a franchise business relationship is a franchise - a complete business package that facilitates and regulates the conduct of business by an authorized dealer.

Benefits of buying a franchise. Any businessman, starting his own business with the support of a franchise, immediately receives a number of advantages for a quick and successful start of the project. In case of concluding an agreement with a franchisor, the dealer gets cooperation with an experienced and reliable partner, the success of which has been proven in practice. The franchisor provides comprehensive assistance to his "clone", as he is interested in making a profit and creating a favorable image for the brand / company. More here - https://en.wikipedia.org/wiki/Franchising