Franchise Law

Academic Research – Franchise Law

The Value of Franchising

Franchising is an established business expansion strategy to help companies grow. Through a legal agreement, the franchisee sells a product or service using the brand name or operating system (or both) of the franchisor, typically in return for a lump sum payment and annual royalty fee. Most people immediately associate franchising with fast food restaurants. Interestingly, however, quick service restaurants are just a fraction of the entire sector, making up only a fourth of all franchised establishments, less than half of the workers, and just over a third of the economic output.

Published: February 1, 2023

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