Franchising

Franchising is a business model where a company, the franchisor, grants a third party, the franchisee, the rights to operate a business using its brand, systems, and support. In exchange, the franchisee typically pays an initial franchise fee and ongoing royalties. This model allows businesses to expand rapidly with lower capital requirements by leveraging the investments of franchisees, while franchisees gain access to an established brand and operational framework. Franchising is common in industries like fast food, retail, and service sectors.