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Franchising

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.