Franchising as a sales concept originated at the end of the 19th century in the USA. Today, there are more than 12,000 franchise systems and 800,000 franchisees worldwide.
Nowadays, franchising is regarded as a business model whereby a company - the franchisor - grants others - the franchisee - the right to implement their well-proven business concept under the franchisor’s brand at a given location. In order to be granted these rights franchisees are obliged to pay franchise fees and fully implement the standardized business concept.
Franchisees are legally independent entrepreneurs who, on the one hand, operate under their own responsibility and bear the business risk. On the other hand, they benefit from an established and successful business concept.
Therefore, franchising is a partnership that leads to a "win-win" situation from which both sides - the franchisee and the franchisor - profit equally.