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Franchising is a method of disseminating products or services. Franchising consists of a franchisor that provides use of a trademark or trade name and a business system and a franchisee that pays a franchise fee to become part of the franchise business as well as a royalty on a regular basis. For any franchisor to succeed, the majority of its franchisees should carry on profitable franchise units over the long term. A brand's success depends on a continuing partnership between franchisor and franchisee.
The greatest attraction in franchising is the opportunity for an individual to be in command of their destiny and secure their future. The franchise model has caught on as an attractive business opportunity for wealthier individuals and investors who buy many units at once; or who buy the rights to develop a geographical area or "territory" and develop a certain number of units within a specified timeframe. These multi-unit owners, area developers, or area representatives oftentimes recruit new franchisees and support them within their territory are part of a growing movement in franchising, and account for about 50 percent of all franchised units in the U.S. today.