What is franchising?
Franchising is a way of owning one’s own business without having to come up with a new type of business to own. When a person buys a franchise, he or she is paying a company a fee to be able to use their trademarks. The best-known franchises are fast food restaurants.
When a franchisee buys a franchise from McDonald’s, for example, he or she pays a fee to McDonald’s. In exchange, the franchisee gets the right to use the McDonald’s logo and to sell McDonald’s food. They also promise to run their business along certain lines to make sure that they are similar to all the other McDonald’s stores in the country.
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