Franchising is a popular business model that helps brands grow fast while allowing entrepreneurs to run their own business using proven systems. In this setup, the franchisor gives permission to franchisees to use its brand, methods, and support. This benefits both sides: franchisors grow quickly, and franchisees get a well-known brand, training, and lower risks when starting.
This guide explains how franchising works, its benefits and challenges, and how it differs from licensing. It also covers different types of franchises, important parts of a franchise, and the steps for both franchisors and franchisees. Finally, it looks at financing options like Bajaj Finserv business loans to help with franchise growth.
What is a business franchise?
A franchise is a business model where an established company (the franchisor) allows an independent owner (the franchisee) to run a business using its brand, trademark, and proven system. In return for an initial fee and ongoing royalties, the franchisee gets a complete package, including a recognised brand, operational guidelines, training, and continuous support.
This setup benefits both sides: franchisors can grow their business quickly with less financial risk, while franchisees can start a business with a higher chance of success, thanks to an established concept and instant brand recognition.
