A franchise is a type of business in which the owner accepts a license or a franchise fee in order to allow other individuals use business resources such as product, branding and operational knowledge.
The business that grants a license to other individuals is called a franchisor while the Individuals or businesses that pays for the license are called franchisee.
In this type of business model, the franchisee is meant to pay royalties to the franchisor from time to time and this depends on the agreement between both parties.
The franchisee is also meant to get the operation principles of the business so that he can get an optimum result like that of the business owner.
The first time I heard about franchise business was when one of my uncles was succeeding in business and everyone admired him in the family.
