Franchise is the feminine noun that means the act or effect of franking, being synonymous with privilege or exemption. It is also related to the trading system known as franchising.
A franchise is a kind of branch or branch, that is, a branch of business in another location. It is a very popular system because it allows a person to start their own business with a small investment.
The franchise business model is very common in the food industry, for example, where restaurants with very successful allow people to open a franchise of their own, taking advantage of the established fame and network of customers.
At the franchising, there is the franchisor and the franchisee. The franchisor is the owner of the company, which grants the right to use the brand. The franchisee is the person or group that wants to open the franchise. All conditions are set out in the contract between the franchisor and franchisee.
The franchisee invests some money to have the right to use the franchisor's name and methods, also learning from their experience. This is the initial fee, also known as
franchising fee, amount that is paid by the franchisee when the contract is signed.Another common term in franchising they are the royalties, a fee that is paid periodically by the franchisee to the franchisor. This amount is a percentage of the gross sales earned by the franchise.
In addition, there is also a fee for advertising and advertising, which is paid by the franchisee to the franchisor, and serves to contribute to the franchisor for the investment made to promote the product or service in question.
The word franchising is also applied when, in customs, a ship enters the port without having to pay taxes.
