Today, in the business world, franchising is fast becoming the most popular way to start up or expand a business.
Franchising is a continued relationship with a franchisor who provides a licensed privilege to the franchisee to do business and offers assistance in organizing , training, merchandising, marketing and managing in return for a monetary consideration.
To put this in a simpler form, franchising is obtaining license from established brands in order to benefit from the goodwill of these brands and in return, pay royalties to these brands.
So you may ask. Why francishing?
Well, if buying an existing business is not good for you and starting a business from the scratch sounds intimidating then franchising might be next best option.
So basically the franchisee pays an initial fee and an ongoing royalties to the franchisor in return he gains the trade mark, system of doing business, etc. The advantage here is you get a proven system of operation and training on how to use it.
Most franchsors conduct research before selling a new outlet or license so you'll feel greater confidence that there is a demand for your product or service .
Finally, there is the advantage of numbers. The franchisee enjoys the strength and support of the franchisor so there a much higher chance of succeeding.
So when deciding on how to start or expand your business, you might want to consider franchising.
Source: https://www.entrepreneur.com/encyclopedia/franchising