What Are Franchise Systems?
The term franchise comes from a French word which means “freedom.” Politically, a franchise is the freedom to participate in government, generally through the right to vote. In business, franchise systems are business models in which a company with a successful product or business system allows other businesses the right, or freedom, to operate under their trade name for a fee. The original business which sells the right is called the franchisor: the person or company which purchases the right is called the franchisee.
