What is Franchising?

Franchising is a dynamic and effective tool for business expansion. It is a business method which accounts for over $1.5 trillion in retail sales annually. Franchising also requires proper documentation and systems that protect the interests of both the franchisor and franchisee.

When a business (the "franchisor") grants another person or business (the "franchisee") the right to offer, sell or distribute its goods or services under the franchisor's trade name and to use the franchisor's business systems by written agreement, it is a franchise.

In brief, the following elements are typically part of a business format franchise:

• Trademark Association - trade name, trademark, logo etc.
• Business Systems - standard practices defined and controlled by the franchisor
• Fee or Consideration - a minimum payment of $500

Why Franchise?

The franchising concept is an American phenomenon. According to the International Franchise Association, 40% of all consumer purchases are made through a franchise. There are currently over 760,000 franchised businesses employing over 9.7 million people and a new franchise opens somewhere in the U.S. every 8 minutes!

Franchising is a proven business strategy that promotes the dynamic relationship of established business know-how and the entrepreneurial spirit.