Contractual selling or renting of a business model around specific products and/or services at specific locations under specific arrangements. The franchiser contractually gives the franchisee use of a brand name or trademark or trade-name, and certain business systems and processes. The process are how to specifically produce and market franchise goods or services. A one-time franchise fee plus a percentage of sales revenue as royalty earns the franchise. The franchiser achieves rapid business and earnings expansion at minimum capital outlay . It includes (1) immediate brand recognition , (2) marketable , profitable products, (3) standard building layout and decorations (4) details for running and promoting business, (5)employee hiring and training, and (6) ongoing help in promoting and upgrading of the products.
Black’s Law Online Dictionary
