What is Franchising?
Franchising is a method of business expansion through licensing. In franchising, there are two parties, the franchisor and the franchisee. The franchisor holds the licensing for the franchised company and they can then grant use of that license to a franchisee through a contractual agreement. The franchisee can then conduct business under the franchised company name. The franchisor will also provide the franchisee with an operating system and support.
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