A way of distributing a product or service
What could franchising mean for you? For example, you could use franchising to draw the benefits of an already existing brand and proven business model. A franchisee thus pays for the right to use another, more established company's IP.
The franchisee, a third-party owner
Companies can make money by leveraging their product to franchisees who have to lease properties that the property owners own, often at large markups.
The business for the franchiser
By franchising your product, you can receive steady and predictable revenue streams from rent and royalty payments. The operating costs are also measurably lower, as the responsibility is spread out among the individual franchisees.