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What Is a Franchise?

By Catherine Brock – Updated Apr 9, 2025 at 11:14AM

Key Points

  • Franchising allows new entrepreneurs to use a proven business model and brand recognition.
  • Franchisees buy rights to operate a business, but must adhere to franchisor-set rules and fees.
  • Researching franchisor support and costs helps gauge potential success and fit for the investor.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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