Franchising Is A Marketing Idea That May Be Used By A Company As A Business Expansion Strategy. A Franchisor Licences To A Franchisee Some Or All Of Its Know-How, Methods, Intellectual Property, Use Of Its Business Model, Brand, And Rights To Market Its Branded Products And Services. In Exchange, The Franchisee Pays Certain Fees And Commits To Certain Duties, Which Are Often Outlined In A Franchise Agreement.

The Term Franchise Is Of Anglo-French Origin (From Franc, Which Means ‘Free’) And Is Used As Both A Noun And A (Transitive) Verb.