What does franchise?

A franchise is a business model where an individual or group (the franchisee) is granted the rights to operate a business using the branding, systems, and support of an established company (the franchisor). The franchisee typically pays an initial fee and ongoing royalties in exchange for this privilege. This model allows for rapid expansion and brand recognition while enabling franchisees to benefit from the established reputation and resources of the franchisor. Common examples include fast-food chains, hotels, and retail stores.