Franchising refers tothe methods of practising and using another person's
business philosophy which occurs when the owner of a business(the franchisor)
grants a licence to another person or business(the franchisee) to use their
business idea ,often in a specified time and rules. It is an agreement between
two independent parts.Franchising has launched in the USA where it was
firstly created and carried out.
Franchisee which means 'benefit' literally is an English origin word.It was
derived from the French word of 'Affanchir'.
Franchisor is the brand owner whose business idea,process,product,name,etc.
are being used by a franchise holder or franchisee.He is the builder and
long term protector of the franchising system consisitng of himself and the franchisees.
Franchisee, individual or company, undertakes all the trade's name, brand,
know-how, technical approaches, system and the intellectual property right
of franchisor with an agreement signed by two parts including all the
commercial and technical supports. The money paid by franchisee to join
the system is called as 'Franchisee Fee' which is the uppfront cost
associated with obtaining the use of franchisor's mark,name,logo as
well as numerous sundry items such as initial training,set up and so
on,also it includes 'royalt' the fee for the percentage of gross,annual return and profit.