The Franchise system is an alternative business growth strategy for business organisations. Adopting this system for the sale and distribution of goods and services minimizes the franchiser's capital investment and liability risk.
Now, what really is Franchising?
Franchising is a method that business organizations adopt for expansion and distributing goods and services through a licensing relationship.
How Does Franchising Work?
Before understanding how franchising works, there are two terms we should note:
- The Franchisor
- The Franchisee
The Franchisor or Franchiser is a person or company that licenses its brand, its technical know-how, procedures; and right to sell its branded product to a third party (franchisee).
The Franchisee is a person or company who is granted the licence to do business under the trademark and trade name by the franchisor.
In Franchising, franchisors not only specify the products and services that will be offered by franchisees but also provide them with an operating system, brand and support.
Visit International Franchise Association (IFA) to learn more about franchising.
At Crypto Franchise Inc., we combine the traditional franchising model and the crypto-franchising model to bring franchise investment to you regardless of your financial status. Read the next post on the understanding the crypto franchising model.