What is a Franchise?

A franchise is an agreement between two people/parties which allows the person or group (the franchisee) to sell a product or service that is trademarked to someone else (the franchisor).

The biggest franchises we see on the high street are fast-food chains like McDonald’s, Burger King etc but are also seen in situations like fitness instructors and dance/acting clubs. An established brand allows individuals to pay a fee to use their company names and products to run their own business.

This can be a great way to work under the name of a large company that is already well known without the huge costs that come with that kind of recognition. Very often there is a fee to pay to set up the franchise and then normally you will pay either a set amount of money or a percentage of your takings to the franchisor. The franchisor will also normally provide training within this fee so you would not have to worry about that side of things.