Franchising is a business model that businesses use to expand their brand and operational footprint. A franchisor is a company, business or person that has developed a system/name and grants a third party the right to operate a business under the system and name in consideration of fees from the third party. According to the International Franchise Association, a franchise is “the agreement or license between two legally independent parties which gives: a person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor); the franchisee the right to market a product or service using the trademark or trade name of another business.'' The essence is to enable the franchisee enjoy commercial success in his business by 'riding on the coat tails' of the franchisor. There is usually a fee (the 'franchise fee' or royalty) attached to the use of the system.
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