Market expansion can result in franchising. There are 2 types if franchising in
hospitality.
• Business format franchising - franchisee gets to use the parent company's
trade name and logo just as the product distribution franchisee does, but
more importantly, it gets the complete system for delivering the product or
service and for doing business.
• Conversion franchising - the situation in which someone with a successful
small business is offered the opportunity to convert his independent
business into a franchised business by affiliating with a franchise
organization.
• Source: http://www.franchiseremedies.com/