User:EricSchuiteboer/sandbox

Franchising
Franchising is a marketing system that enables a brand to vertically integrate through licensed franchise owners. By allocating resources, management systems, and exclusive brand rights, the franchise is able to expand rapidly and reduce financial risk that often comes with expansion. Individuals agree to buy the franchise in exchange for resources like suppliers, marketing, business structure, policy, and rights to the brand. Typically the franchisee and the franchisor sign a Franchise agreement where the franchisee agrees to utilize these resources typically in exchange for a down-payment and/or periodic royalties; however, each franchise varies in its agreement structure.

In 2005, United States franchises were responsible for employing 11 million individuals. As franchising continues to grow into a popular corporate model in many industries, the emphasis on efficiency and strategic models is what makes a franchise successful.