What Is a Franchise, and How Does It Work?

When a business wants to increase its market share or geographical reach at a low cost, it may franchise its product and brand name. A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor's goods or services under an existing business model and trademark. To know more: https://www.investopedia.com/terms/f/franchise.asp#:~:text=A%20franchise%20is%20a%20type,under%20the%20franchisor's%20business%20name.