Franchising is simply a system for expanding a business and distributing goods and services to meet higher consumer demand. It’s based on a relationship between the brand owner and the local operator to skillfully and successfully extend one’s established business system.
From a business perspective, a franchise is a contractual relationship between a licensor and a licensee for the licensee to use the licensor’s method of doing business to distribute products or services using the franchisor’s trade or service mark.