Franchising - GCSE Business Definition

Franchising is where a business owner, the franchisor, allows another individual or group, the franchisee, to operate a copy of the business using its brand, products, and operational methods in exchange for a fee. This benefits the franchisor by expanding the brand's reach and generating additional income with reduced risk. The franchisee gains access to an established brand and business support. For GCSE Business students, understanding franchising is crucial, as it explains how businesses can grow rapidly and effectively. Exploiting existing brand success and providing opportunities for entrepreneurs to run their businesses under a recognised brand benefits both parties.