Simply, franchising is a method of business by which you, the franchisor, who has developed a successful product or service and a proven format of business operation, grants your franchisee (an independent business person) by contract agreement the right to sell goods or services under your system. You permit the franchisee to use your trademark, name, advertising, and know-how.

You help your franchisee establish the business on a local level and provide continuing support to help him successfully market your product or service. For this management guidance and assistance, your franchisee normally pays you a franchise fee and a continuing royalty based on the sales of the operation.

You benefit because you pool your resources (market talent, management expertise, and experience) with the resources of your franchisees (local involvement and exposure, aggressiveness and education, and local capital). You raise money and expand your business while your franchisees fulfill their need for independence with a minimum of risk and involvement and a maximum opportunity for success.

Thus, you profit while helping others profit!