Forbes India:

A franchise system is a collaboration agreement between two independent business parts, the franchisor and the franchisee, whereby the franchisor allows the franchisee the right to use his brand name, products and services, and specific know-how in exchange for direct or indirect payments to the franchisor by the franchisee. In other words, the franchise system consists of multiple organizations that are legally independent, economically interdependent, and operationally indistinguishable to consumers.

The success of the franchise system is reflected in its spectacular growth figures. In the U.S., where the franchising system began in the early 20th century, there are more than 3,000 companies involved in franchising, accounting for more than 10% of GDP and an estimated 30% of retail sales. Read on…