The arrangement, defined.
WHAT FRANCHISING IS
One party granting another the right to operate a business using its brand, system and methods, in exchange for payment.
WHAT THE FRANCHISOR PROVIDES
The brand A proven operating system Training Ongoing support Sometimes supply arrangements
WHAT THE FRANCHISEE PROVIDES
Capital Local operation and management
Payment: an initial fee and ongoing fees
WHY IT EXISTS
It allows a business model to expand using other people's capital and effort.
WHAT DISTINGUISHES IT FROM A LICENCE
Franchising involves control over how the business is operated; a licence typically grants use of something without that control.
WHAT DISTINGUISHES IT FROM A DISTRIBUTORSHIP
A distributor sells your products; a franchisee operates your business.
WHY THE DISTINCTION MATTERS
Obligations and expectations differ, and calling an arrangement by the wrong name creates disputes.
WHAT MAKES FRANCHISING WORK
A model that genuinely works and can be repeated Documentation sufficient for someone else to follow Support that is actually provided Franchisees who can operate
WHAT MAKES IT FAIL
A model that only worked because of the founder Inadequate documentation Support promised and not delivered Franchisees selected badly
WHAT TO TREAT THIS CATEGORY AS
General guidance, with agreements drafted and reviewed by a solicitor.
