Franchising is a method of distributing products and services. At least two levels of people are involved in the franchise system:
(1) the franchisor, who lends his trademark or trade name and a business system; and
(2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system. Technically, the contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.
Franchising is a contractual agreement between two parties