A franchise is a business system in which private entrepreneurs purchase the rights to open and run a location of a larger company. The franchising company, or franchiser, signs a contractual agreement with the franchisee, explaining in detail the company’s rules for operating the franchise. Franchises are a very popular method for people to start a business, especially for those who wish to operate in a highly competitive industry like the fast-food industry. One of the biggest advantages of purchasing a franchise is that you have access to an established company’s brand name; meaning that you do not need to spend further resources to get your name and product out to customers.
