Explain the term ‘franchising’ and give one example of a franchise - Leaving Cert Business - Question 6 - 2009

Franchising is a business model that involves a legal agreement between a franchisor and a franchisee. In this arrangement, the franchisor grants the franchisee the right to operate a business using its name, branding, and operational guidelines. This includes supplying goods or services under the franchisor's established system.

The franchisee pays an initial fee and an ongoing royalty or percentage of sales to the franchisor. In return, the franchisee benefits from a recognized trademark and business support, allowing them to operate under a proven business model.