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Franchising is a business model where a company (the franchisor) allows individuals or other businesses (franchisees) to operate a branch of its brand.

 

In this arrangement, franchisees pay and royalties to the franchisor in exchange for the right to use the brand's name, products, and operational support.

 

This model allows franchisees to leverage an established brand and business system, while franchisors can expand their brand presence with lower capital investment. Overall, franchising can be a mutually beneficial relationship that drives growth for both parties.