Franchising is typically done by

Franchising is typically done by a franchisor, who is the original business owner or brand, granting the rights to a third party, known as the franchisee, to operate a business using the franchisor's brand, business model, and operational guidelines. The franchisee pays an initial fee and ongoing royalties in exchange for support, training, and the established reputation of the franchisor's brand.

There are several key aspects involved in franchising:

1. Brand Recognition: The franchisor's brand is often well-known, providing immediate recognition and trust among consumers, which is a significant advantage for the franchisee.

2. Business Model: The franchisor provides a tested business model, which helps mitigate risks for the franchisee who would otherwise have to start a business from scratch.

3. Training and Support: Franchise agreements usually include initial training and ongoing support, helping franchisees to effectively run their businesses according to the franchisor's standards.

4. Marketing and Advertising: Franchisees often benefit from collective marketing efforts funded by a portion of their sales, allowing for more effective advertising than they might achieve alone.

5. Legal Contracts: The relationship between franchisor and franchisee is governed by a legal contract that delineates responsibilities, fees, and the scope of operations.

Franchising allows for rapid expansion of businesses while providing opportunities for entrepreneurs to start their own businesses with a lower risk compared to independent startups.