Franchise as a method of developing its own business

Franchising is a method for spreading products

In general, franchising is a method used by the company to distribute its products or services through outlets belonging to third parties.

An independent operator makes his business using marketing methods, trademarks of goods and services and “good will”, the name of the company recognized in the market. In turn, an independent operator pays the initial contribution and royalties to the owner of the franchise.

A company that provides an independent operator with the right to distribute its brands, products or technologies is called a franchisor.

Independent third parties, business participants in the distribution of franchisor products or its services through retail or service points are called franchisee.