Overview of Franchise Sales

What is a Franchise?
Franchising is an understanding between two parties in which one party that has developed a proved method of operating and managing a business successfully, gives the rights to the other party to operate that business format under the trade or service mark

Who is a Franchisor?
The party that owns the trade or service mark is called the franchisor. He has developed a proven way of running and managing the business which he licenses to another party to operate under certain terms and conditions.

Who is a Franchisee?
The party that obtains the rights to trade and operate a business under license, is a franchisee. He uses the format and the trade or service mark owned by the franchisor. He invests capital, time and experience to replicate the franchisor's business system