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What is a business franchise?

Franchising is where an established business charges other businesses to use their name, branding and model.

Are there different types of franchise?

Franchising models can vary, but typically fall into one of three categories. A business franchise sees the franchisee replicate the way the established business operates, whilst a product franchise is more like an exclusive agreement between the buyer and seller to provide and sell particular items. In a manufacturing franchise, an established business allows other firms to provide their goods and services under licence.

Our guide explains how franchises work, the pros and cons for businesses looking to become franchisors or franchisees, and offer some tips on getting started.


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