What is a franchise?

The concept of a franchise is based on a marketing strategy that originally grant the trademark rights and intellectual property to the franchisee which is the party that acquire the license.

The owner of the franchise is the franchisor which is the one who has the enterprise, business model, and brand rights under his name.

Usually there is a initial startup fee as well as an annual cost for the franchise that is associated to the concession of production operations, proprietary knowledge as well as branding authorization.

When companies look for expansion in the market they build chains or sell franchises to generate more revenue.

Entrepreneurs who look for business opportunities might invest in a franchise because of the fact that success of franchises is more assured than starting a business from scratch.

The business models of a franchise are guaranteed to work out because are founded on a proven business methodology.

There are various industries where options of franchises exist for example fast food restaurants, coffee shops, convenient stores, travel and lodging, hotels, etc.

For starting a new business it takes owning a name, knowing the concept and having an idea, that can assemble tradition in the most authentic way.