What is franchising?

  • Written by: Elon Musk
  • Date published: 
  • Updated


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:

  1. The Franchisor
  2. 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.

Was this article helpful?

Then Share it to someone else

Subscribe to our newsletter

Don't stay out-of-date. Get the latest franchise promotion updates, our company updates and lots more straight to your mail box. We won't spam you. We send mails only occassionally.

It's never too late to get started now. Let's help you fufil your dreams. Invest in a franchise for as low as $50

Start Investing