Franchising is a broad concept and it is very hard to define franchise in a nutshell. Still, let’s try to define franchise in brief. Franchising is said to be an agreement that the franchisor and the franchisee sign on. This agreement contains the terms and conditions that the franchisee will have to adhere to. These rules and regulations are framed in such a way that the goodwill of the franchisor remains intact.
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Another key aspect that comes forward while we define franchise is the issue of the monetary transactions. The franchisor is looking for profits and that is why he is allowing someone else to market his product or services. The franchisor generally charges a fee or royalty and lets the franchisee use the trademark of the company. This agreement also states in clear terms the kind of training that will be provided to the franchisee