Definition of Franchising



Franchising is a common business strategy where franchisor (producer) gives license to the franchisee (retailer) to sell products or services under their brand name for an agreed fee or commission.

 


Franchising allows business owners to use well-known brands to reduce their cost, make good profits and enjoy assistance from the franchisor.  Retailers are bound to follow the SOP’s issued by the franchisor to stay in the business. The franchising model is most common is food, education or fashion industry.

 

View More Strategic Management Definitions