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Franchises :
Franchising (from the French for honesty[citation needed]) is a method of doing business
wherein a franchiser licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage piece of gross sales or gross profits as well as the annual fees.
Various tangibles and intangibles such as national or international advertising, training, and other support services are commonly made available by the franchiser, and may indeed be required by the franchiser, which generally requires audited books, and may subject the
franchisee or the outlet to periodic and surprise spot checks.
Failure of such tests typically involve non-renewal or cancellation of franchise rights.
A business operated under a franchise arrangement is often called a chain store, franchise outlet, or simply franchise.
