Franchising 101

Franchising 101​

Franchising is a licensing agreement between two parties, the Franchisor and the Franchisee.

Typically, the franchisor provides a thorough outline, a methodology, or rulebook for opening, managing, promoting and operating the business. There are mandated steps to provide consistency to the consumer population, creating uniformity in the experience from location to location. The franchisor provides and enforces established guidelines based on experience (avoid mistakes and apply best practices) to help the franchisee make positive management and execution decisions, and to position the business in the marketplace to compete for the consumer’s attention.