What is Franchising
A franchise is an agreement or license entered into by two parties, the franchisor and the franchisee.
A franchise gives a person or group of people - the franchisee - the rights to market a product or service using the trademark of another business (the franchisor).

  • The franchisor has the obligation to provide these rights and generally support the franchisee, both initially and on an ongoing basis.
  • The franchisee has the right to market the product or service using the operating methods of the franchisor.
  • The franchisee has the obligation to pay the franchisor certain fees as agreed to in the franchise agreement.

(*source: www.whichfranchise.co.za)

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