What Does Franchise Mean?

The term franchise means a privilege of a public nature conferred on an individual, group or a company by a government. Franchising is also quiet well known it is basically the system of doing business in which a franchisor licenses trademark and established system of doing business is given to a franchise in return for a fixed recurring amount.

It generally also has the clause of giving a fixed percentage on the total gross sales or gross profits along with yearly fees. A range of tangible as well as intangibles like national and international advertising, training and many varied forms of support services are generally given by the franchisor, and could also be compulsorily needed by the franchisor, which normally requires audited books, and may question the franchisee or the outlet with time to time surprise spot inspections.

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