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What is a Franchise?

Franchising is a common method of registering a company  – by adopting a tried and tested formula.

A franchise is a method of running an enterprise with a ‘blueprint’ designed by a franchiser licensed to the franchisee.

In exchange for a fee of varying amounts, you, (the ‘franchisee’) pay a fee to the company with the product/service, (the ‘franchisor’), for the rights to market the product or service usually for a set time period in a specific area.

In the UK there are currently more than 700 different businesses run as franchises.

This post was brought to by Mathew Aitken at Companies Made Simple

 

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