A franchise is a business model built on a contractual relationship between a franchisor and a franchisee. The franchisor owns the rights to a brand, product, or proven concept, while the franchisee obtains the right to use it under defined conditions.
The franchisor provides the franchisee with a registered trademark, standardized procedures, initial training, communication tools, ongoing support, and, in some cases, access to central resources (marketing, group purchasing). In return, the franchisee pays an initial fee and regular royalties, often proportional to turnover or profits.
This model allows the franchisee to start a business with limited risk, relying on a proven concept and the support of an established brand while retaining entrepreneurial independence. For the franchisor, it is an effective way to expand its network and geographic presence without bearing the development costs alone.
Franchising is present in many sectors, including fast food, hospitality, retail, and services, and is governed by specific laws that protect both parties and ensure fair practices. It is both a growth driver for businesses and an attractive opportunity for entrepreneurs.